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1. Suppose a firm operates as a price taker in a perfectly competitive industry. The firm's TC function is given by TC = 60 +3Q +2Q2, so its Marginal Cost is MC = 3 +4Q. If the market price is P = $95, what is the maximum amount of profit that this firm can earn in a given production period?
1.Do any groups of people gain from inflation?
Show and explain the long-run adjustment process for both the firm and the industry. Whatwill happen to the number of firms in the new long-run equilibrium?
Suppose if the Federal Reserve were to sell bonds, what would likely happen to money supply and interest rates? Explain it carefully.
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Explain how the aggregate expenditure function shifts in response to changes in each of the variables - The real interest rate increases and Consumer confidence decreases.
What recommendations would you offer to top management at Bob's Manufacturing Company to preempt or minimize problems with the new reward system?
What is the probability of loss if you bet the pass line and the no pass line in craps?
Kinds of pricing and output strategies that Katrina's Candies should use to reach the goal of profit maximization. Suggest key modifications that Katrina's Candies should make in order to maintain a competitive advantage when new entrants enter the m..
The Alex Corporation uses two inputs, A and B, to produce boats. The production function for boats is given through
James way Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
What is the significance of the term endogenousa in endogenous growth theory? What, according to this theory, determines the long-run rate of economic growth?
Set the price of tuna to its equilibrium level. Now the price of tacos falls to $3. At the current price of spaghetti, supply changes by what?
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