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The total profit of a firm is given by
Profit = Total Revenue – Total Cost
Suppose that Total Revenue = 100Q and Total Cost = 30 + 50Q where Q, the quantity sold, is a random variable with expected value 20 and variance 4.
What is the standard deviation of total profit?
what resources do you make use of in order to maximize your level of satisfaction How do we determine what items to buy How do companies decide what items to produce How do firms determine whether to produce something
Suppose government spending increases. Would the effect on aggregate demand be larger if the Federal Reserve held the money supply constant in response or if the Fed were committed to maintaining a fixed interest rate
a. Graphically explain what happens to the reservation wage if someone needs to spend some of their non-labor income on day-care services in order to become employed. b. Graphically explain what happens to the reservation wage if someone experience..
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic fluctuation the United States has experiences from 1990 to current date.
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Alba and Gavigan set up their site so that families could choose what kinds of non-toxic, all natural products they'd like ..
Mergers are treated differently, depending on the type of merger and the effect on the industry. There are three types of mergers: Horizontal mergers are between companies selling similar products in the same market; Vertical mergers are between f..
By 2011, when the economy appeared to be sputtering on its way to recovery, President Obama and the Democrats proposed additional actions to increase government spending to stimulate the economy and keep it from falling back into a recession.
Determine the profit-maximizing average monthly production capacity for DermaPlus for each of the possible reference-based prices identified by the consultant. Estimate the expected monthly profit in each case.
The market is created by demand and supply of products in the economy. Describe the law of demand. Explain a situation in your life where you noticed this law at work.
Your local government needs to increase tax revenue. To increase tax revenue it can either increase the property tax on residential property or increase the property tax on all property. The government wants to impose the smallest excess burden po..
Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices
Discuss why is increasing per capital income necessary but not sufficient for broadly dipping poverty and improving human welfare?
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