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Suppose the market for French fries is perfectly competitive. A small operator of a french fry stand has a short run total cost function STC(Q) = 4Q^2 - Q + 1
Part 1 - What is the profit maximizing output when the price is $7?
Part 2 - At what price would the firm choose to shutdown?
Part 3 - What is the short-run market supply curve? Assuming there are 50 identical firms currently operating.
Explain the importance of price elasticity of aggregate demand. That is, what are the different welfare implications with respect to consumer surplus when aggregate demand is elastic compared to when aggregate demand is inelastic?
In the last month, the price of gasoline increased by 20 percent. Your job is to determine what caused the increase in price: a change in demand or a change in supply. Ms. Info has all the numbers associated with the gasoline market.
The variables appears to be the most significantly different from zero?
choose two companies in the same industry - one with a cost leadership strategy and one with a differentiation
car breaks down and you are deciding to have it repaired. The most relevant issue in this economic decision is:A. How much you spent on past repairs on the car B. How much you paid for the car when you bought it
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard..
the demand function for einstein bagels has been estimated as followsqx -15.87 - 40.73px 84.17py 0.55axwhere qx
Computer software utilizes skilled labor relatively intensively.If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U...
Suppose that a natural monopolist was required by law to charge average total cost. On a diagram, label the price charged and the deadweight loss to society relative to marginal cost pricing. Briefly explain your diagram and comment on the results..
About two-thirds of funding for substance abuse treatment comes from taxpayers. Are there external benefits of substance abuse treatment that warrant this level of public funding?
The company pays a $2 annual cash dividend. After a year has passed the seller cover a short position of $42. Then what is the percentage return on the position?
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