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a. What is the Zero profit Theorem? Explain briefly.
b. Suppose a grocer in a growing neighborhood comes to enjoy large eco nomic profit by virtue of his special location, which is not available to competing stores. If no new firm can locate nearby, it would seem the theorem might not apply. Does it? Explain.
What are some of the unintended consequences of efforts to regulate the illicit global economy? How can states more effectively reduce the negative consequences of black markets?
Use the GG-LL diagram to show how an increase in the size and frequency of unexpected shifts in a country's money demand function affects the level of economic integration with a currency area at which the country will wish to join.
Picture the used car market: Cars are either high, medium, or low quality. To buyers, high quality cars (which never break down) are worth $8,000, medium quality cars (which sometimes break down) are worth $5,000, and low quality cars (which often br..
Given 2 (two-period) Jobs with the following cost and flows. Job A: will cost $50,000 in year 1 and will yield $84,000 in year 2 Job B: will cost $80,000 in year 1 and will yield $120,000 in year 2 Dwight and James are looking at these 2 jobs and wil..
Elucidate why are shortages or surpluses more likely with preset costs, such as those on tickets, than flexible costs
Gandolfi construction company purchased a used CAT 336D earth mower at a cost of $325,000 in January 2013. The company's estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $75,000.00 Using straight-line depr..
You’ve just purchased your first home for $360,000! Your 30 year mortgage is $300,000. Your annual mortgage payments are $24,000. What interest rate is the bank charging you? If instead you had the choice of making monthly payments of $2,000 for 30 y..
The market demand is P=100-1.5Q and marginal & average costs are constant at 10 (MC=AC=10) find the monopoly price and quantity. Find the perfect competition price and quantity. Calculate profit, social welfare (consumer and producer surpluses), and ..
Jenny Wilson is the owner and broker of a real estate company in Montgomery, Alabama. This company is known as Jenny Wilson Realty. Ms. Wilson wants to develop a regression model to explain the selling price (SP) for a house based on the size of the ..
f merging carried with it no cost advantage, determine the number of firms needed for the merger to be protable
q1. clarify how immigration between two countries could be an equalizer of wages as well as economical for both sending
You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the present value of this prize?
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