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There are 300 purely competetive farms in the local dairy market. Of the 300 dairy farms, 298 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 structure that generates profits of $22 for every $200 invested. What is their rate of return earned by most firms in the industry in the long-run equilibrium?
If a firm has created value is it also always able to capture that value How does a firm create value and then what must it be able to do to capture that value In your answer provide an example of a firm that has been able to create value.
Suppose the payoffs are instead as follows If they both open at location A, theater earns 12 while the restaurnat earns 8. If both open at B, the theater earns 8 and the restaurant earns 12. IF they open at different locations, they both earn 2.
Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change.
Compare the quantity of check-writing deposits when reserves are held constant and the reserve requirement is lowered in (a) with the quantity of deposits when the amount of reserves held by banks is increased and the reserve requirement remains cons..
Consider the process by which the economy self-corrects following an initial increase in aggregate demand. This process is similar to the process of self-correction following an initial decrease in aggregate demand, but in reverse.
Would you have a higher consumption standard of living by self-sufficiently producing all the goods you also your family want to consume or by employing your labor.
Suppose production of this good imposes external costs of $10 for each unit produced. Does this cause an over or an underallocation of resources to production of this good
Carefully explain what happens to the demand for a Giffen good
Data Collected in the imaginary econmomy of Chipolaysia reveals that when the price of dorf decreased by 25%, the quantity of dorf sold increased by 10%.
Since January of 2001 the Fed has reduced its Fed funds rate target from 6.5 percent to 1 percent. Nonetheless, the number of people at work is less than
Explain why RELATIVE prices of two goods, both produced in each of two countries, will differ prior to any trade taking place ("autarky"). why profit-seeking will cause each country to specialize - wholly or partially - in producing one of the goo..
how much of an environmental resource it should use. Develop a simple graphical model that shows this quantity fully explaining what both the marginal benefit and marginal cost curves mean, and fully explaining conditions for maximizing net benefi..
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