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a. Explain the relationship between the law of diminishing marginal returns and the shape of a firm's marginal cost curve?
b. The long-run equilibrium for a perfectly competitive industry occurs when the firms are earning economic profits of zero. Why would firm stay in business if it is making zero economic profits?
c. Should governments outlaw monopolistic competition in the interests of efficiency? Why or why not?
Since food, in large measure, affects the real income of households, increasing prices will eventually push up wages and have an impact on the aggregate supply curve. Central banks were very worried about the prospects for inflation becoming gener..
Over the business cycle, real GDP tends to increase during the expansion and decrease during the contraction. Can you name some other macro variables that fluctuate over the business cycle like GDP does?
A television station is planning the sale of promotional DVDs. It can have DVDs manufactured by one of two suppliers. Supplier A will charge the station a set-up fees of $1,200 plus $2 for each DVD.
Compute the profit maximizing output produced by each firm. Compute the profits earned by each firm and the cartel.
Two banks have lent $20million each to a country in an Emerging Market. Bank A has total assets of $220 million and a capital to total assets ratio of 7 percent. Bank B has total assets of $350 million and a capital to total assets ratio of 6 perc..
Two major areas of health care reform involve universal access and containing costs. List the specific options discussed in your text that work toward these reforms.
Distinguish between a change in Supply and a change in the quantity supplied. Refer to both increases and decreases for each. Distinguish between a change in Demand and a change in the quantity demanded. Refer to both increases and decreases for.
The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, How will a successful campaign that decreases the supply of drugs influence the price
Suppose that the firms markup over costs is 6%, and the wage-setting equation is W = P(1-u+z) where u is the unemployment rate and z is equal to 0.03. What is the real wage as determined by the price-setting equation? What is the natural ..
What information did you have or obtain that helped make your decision a well-informed one.there something you didn't know beforehand.
When using the traditional command-and-control approach to environmental regulation, the government attempts to: a. make allowances for differences across industries and between firms. b. set standards that are applicable to all situations and does n..
What are the different types of control systems What are some advantages and disadvantages of the various control mechanisms How does your organization use the steps of the control process
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