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There are 300 purely competitive farms in local dairy market. Of the 300 dairy farms, 297 have a cost structure that generates profits of $24 for every $300 invested. What is their percentage rate of return? The other two dairies have a cost that generates profits of $22 for every $200 invested. What is their percentage rate of return? Assuming that the normal rate of profit in the economy is 10 percent will there be entry or exit? Will the change in the number of firms affect the two that earn $22 for every $200 invested? What will be the rate of return earned by most-firms in the industry in long-run equilibrium? If firms can copy each other’s technology, what will be the rate of return eventually earned by all firms?
During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections.
Do you think that the AUD will fall as low as US 65C by the end of 2016? Justify your answer. What advantages do you think Australia will have in such a scenario? If the market rate is US 65C then what action could the Reserve Bank of Australia take..
Recently the government imposed a new requirement that gasoline contain 10% ethanol; the ethanol is made from corn. This new government ethanol mandate has affected the market for cereal made from corn (such as corn flakes and Captain Crunch).
Explain how does a rise in the unemployment rate affect your chances of finding a job which would match your qualifications as a college graduate.
If, in the short run, a perfectly competitive firm is producing at a point where total cost is greater than total revenue, then the firm should.
Illustrate what should the U.S. Congress and the Federal Reserve do about it. Write your individual answers to both questions listed above together not each minimum 300 words in essay format in APA style.
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
Suppose that a rm has the production function given by f(x1,x2)=4SQRT(x1*x2) Let w1 = $64 and w2 = $1. What is the total cost of producing 20 units of output in the long-run?
Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Jim has $6.00 to spend on commuting. (a) ..
A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?
A site becomes wildly successful in the United States, and you decide to export overseas. Answer the following:
How much income will each acre generate. What are the TR moreover MR for each acre.
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