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Q. It can be derived from market supply curve. Graphically, it is equal to area above supply curve and below price. Example: A producer willing to sell a good for $2 but receiving a price of $5 gains a producer surplus of $3. Is it possible to add consumer and producer surplus?
Q. If your holding period is 1 year i.e., you have to sell this bond after one year, what price will you end up selling at? Show your work. (c) What is your effective rate of return in part (b)?
Suppose Dell computer Company operates in a perfectly competitive market producing 5,000 computers per day. What is total cost to decrease and profits to increase.
Why might the Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than those of Neanderthals.
MB is change in total benefit when adding one more unit and MC is change in total cost when adding one more unit. How many burritos should I eat.
Illustrate which of the following tax systems could NOT be structured to satisfy conditions of vertical equity.
Elucidate what does this indicate concerning inflation expectations in Korea compared to the US.
Is the price mechanism of a perfectly competitive market a good mechanism to allocate gasoline.
If a company gets rid of a coupon does this shift the demand curve or just move a point on the demand curve.
Oligopolies are always bad for society. The beer industry has a few large firms and many small firms; therefore we would not call it an oligopoly.
Illustrate wage would a monopoly union demand. Explain how many workers would be employed under the union contract.
Calculate a marginal cost as well as an average cost schedule for the firm.
Graph the Bens consumption function also find their households marginal propensity to consume.
Leadbelly Co. sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market.
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