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Many marginal cost curves are U-shaped. As a result, it is possible that the MC curve hits the demand or price line at two output levels. Which is the profitmaximizing output? Why?
Are these apps substitutes or complements for smartphones? How has the increase in the availability of apps for these smartphones affected the demand or Apple iPhones? Briefly explain.
The electric and magnetic fields of the composite wave resulting from the superposition of two uniform plane waves
The City of New York has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. Paying this salary, each of the 199 firms makes a normal profit on $500,000 in revenue.
A small business that has taxable income of less that $50k purchases a machine for $10k. The machine yields an annual benefit of $5k over its 5-year life. Is the after-tax rate of return for this item closer to 5% or 12% Assume a straight-line de..
a firm that produces its output in asia and sells it in the united states has one plant in country 1 and another in
Harry marries Sally. The marriage contract raises the cost of exiting a relationship, and thus, for any given level of Harry's expenditure, Sally is less likely to dump Harry. Illustrate the effects of the marriage contract in the accompanying gra..
Profit Functions and Optimal Investment - Derive the optimality condition, or intertemporal Euler equation, for investment I1 - Write the optimality condition for investment It. Explain the intuition behind this equation in words.
Find the socially optimal level of consumption and the amount of tax or penalty needed to bring it about.
Bhagat has announced a $3 price increase for its machine parts. This figure represents the projected $3 increase in labor costs due to its new union contract. It is Gina's responsibility to evaluate this announcement.
Consider A monopolist that faces the constant elasticity demand curve y(p) = p^e where e 0. ASlso assume that the monopolist pays a quantity tax of t > 0. a) verify that the demand curve is in fact of the constant elasticity variety
Big Top is the only circus in the nation. Table 2 sets out the demand schedule for circus tickets and the cost schedule for producing the circus.
What is the effect on the equilibrium price of good 2 relative to good 1 of an increase in each consumer's endowment of good 1 by 1 unit?
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