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What should be the marginal cost of a monopoly firm selling textbooks to students in a small town and is currently maximizing profit by charging a price of $48 a book and the elasticity of demand is 3/2?
Suppose low-income people have preferences for non-food consumption (NF) and for food consumption (F). In the absence of any income transfer programs, a person's budget constraint is given by NF + PFF = I where PFF is the price of food relative to no..
Explain how much total pollution reduction will occur under proposal A and what be will the total compensation received by regions O and R.
The production function for Hamburger Heaven (HH) is q=10KL. Given that the marignal product of labor, MPL = 10K, marginal product of capital, MPK = 10L, and marginal rate of technical substitution (MRTS = MPL MPK ). How much labor HH should employ t..
Determine whether each of the following, other factors held constant, would lead to an increase, a decrease, or no change in the level of real GDP demanded:
If the marginal benifit curve to carbon emission reductions is relatively flat (relative to the cost curve), explain why a tax might be preferable to a cap-and-trade system
What is the present worth of a series of equal payments of $5000 made every two years for the following time frames? The nominal interest rate is 8%. For a period of 40 years? In perpetuity?
What happens to the profits of boat makers in the short run. What happens to the number of boat makers in the long run.
q.the first company is a trendy bar. the bar is currently seeing many young well paid professionals as customers but
In recent decades, trade has been growing faster than income for many countries. What combination of trade effects is sufficient for this to come about? Is this behavior consistent with the Rybczynski theorem? Under what circumstances?
Suppose that there are only two goods, books and coffee. Wally gets utility from both books and coffee, but his indifference curves between them are concave rather than convex to the origin. What do these particular indifference curves tell you about..
To explore the implications of this view, suppose that an economy consumes all wage income and saves all capital income. Show that if the factors of production earn their marginal product, this economy reaches the Golden Rule level of capital.
q1. are the normal returns on investment included as part of costs or as part of profits in managerial economics?
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