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When firms in a perfectly competitive market face the same costs, in the long run they must be operating
a) under diseconomies of scale.
b) with small, but positive, levels of profit.
c) at their efficient scale.
d) where price is equal to average fixed cost.
A store offers two payment plans. Under the installment plan, you pay twenty percent down and twenty percent of the purchase price in each of the next four years. If you pay the entire bill immediately, you can take a five percent discount from the p..
A perfectly competitive firm’s profit-maximizing price is $15. At MC = MR, the output is 100 units. At this level of production, average total costs are $12. The firm’s economic profits are
Illustrate what potential conflicts of interest could arise in a management buyout in which the investment bank is also likely to be an investor.
Discuss and explain the following questions using knowledge about the dynamics of Aggregate Demand and Aggregate Supply Model. What is the cause of the 2007-09 Great recession? What happened to aggregate demand and aggregate supply model during this ..
Suppose that $2,000 is placed in a bank account at the end of each quarter over the next 15 years with the first deposit made 3 month from today. What is the future worth at the end of 15 years when the interest rate is 6% per year compounded quarter..
The market for authentic poutine in Vancouver is controlled by two shops, PierrePoutine (i = P) and Mean Poutine (i = M). The market demand is given by p = 12−q, where p is the price, and q is aggregate output. Both shops produce at constant marginal..
Currently, a fast-food firm has a monopoly in the university student union. The monopoly pays the university $75,000 a year in order to maintain it. The firm earns an economic profit of $290,000 per year. The manager of the first firm calls the unive..
Derive the supply curve for this individual firm. If market price is equal to p=50 what quantity would be supplied? There are only 10 firms in the market. Derive market supply curve. Assume demand is given by: P=100-Q. What would be the equilibrium p..
Total revenue will increase for which of the following?
What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.
Calculate the consumer surplus, the producer surplus, and the total welfare for the competitive equilibrium determined in part (a) of this question.
What indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?
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