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Why do you suppose regulators are allowed by their legislative mandates considerable flexibility with respect to pricing, but are not allowed to subsidize firms out of general revenues?
The price charged to consumers, the average total cost of production and the efficiency of the market outcome
Project labor authorization for January 2017 and What is the estimated budget for the recruitment exercise if the estimated cost of recruiting one employee during the period would be k1500.
1. a company borrowed 300000 cash from the bank by signing a 5-year 8 installment note. the present value factor for an
What is the law of diminishing marginal productivity and How does the law of diminishing marginal productivity affect the cost of productions? Provide an example from your workplace.
analyze the major short-run and long-run production and cost functions implied by this new cost data for the frozen
Explain the process or mechanism underlying how a market-based economic system allocates scares resources. Identify how this process might differ from a centrally planned or command economy.
Solve for the optimal y Max U = E(rc)- ½ Aσc2 = rf + y[E(rp)-rf] - ½ Ay2 σp2
How do you know that the firm represented in the graph above is a purely competitive firm and to maximize profits, this firm will produce at what output level and explain why this MR=MC position is the profit-maximizing position for any firm.
1. the marginal cost pricing model calculates a markup over marginal costs using estimates of the price elasticity of
Since a monopolist has some discretion over the price of its product, how is it possible for this firm ever to experience a short run loss? specifically, why can’t the firm simply charge a price that always exceeds its cost?
Consider a city that has created a monopoly market for package deliveries. Suppose market demand for annual deliveries in millions is Q = 18 – 1.0P, each delivery truck’s weekly cost is C = 1800 + 3 q and each truck can make 280 deliveries per week.
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
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