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    Total Revenue Curve

    When the slope of the total revenue curve is equal to the slope of the total cost curve monopoly profit is maximized marginal revenue equals marginal cost marginal cost curve intersects the total average cost curve. the total cost curve is at its minimum both a and b are correct

    Goods and services

    Which of the following is an example of how the question of "what goods and services to produce?" is answered by the command process? government subsidies for affordable housing laws regarding equal opportunity in employment government allowance for the deduction of interest payments on private mortgag

    Costs, Outputs, and Profits

    Instructions for Homework #5: A Perfect Competitive Firm: Costs, Outputs, and Profits The following graph represents a perfect competitive firm operating in the short-run. Please answer the following questions based on the information from the graph. Please show all your work to get full credits. a. Please determine the firm

    Average fixed cost, MR=MC

    1. Average fixed cost is: a.AC minus AVC b.TC divided by Q c.AVC minus MC d.TC minus TVC 2. Economists consider which of the following costs to be irrelevant to a short-run business decision? a.Opportunity cost b.Out of pocket cost c.Historical Cost d.Replacement Cost 3. When MR=MC a.Marginal profit is maximized

    Decreasing Returns to Scale in the Long Run

    In the long run, a firm is said to be experiencing decreasing returns to scale if a 10 percent increase in inputs results in: an increase in output from 100 to 110. a decrease in output from 100 to 90. an increase in output from 100 to 105. a decrease in output from 100 to 85.

    Function of a Perfect Substitution of Two Inputs

    The perfect substitution of two inputs implies that two inputs can be substituted at a ratio of 1 to 1. one input can be substituted for another up to some point. two inputs can be substituted at some constant ratio. one input can be substituted for another.

    Defining Business Risk

    ____________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm. structural fluctuational business financial

    Monopolist in publishing a textbook on Hong Kong economy.

    3. SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy. Besides the Hong Kong market, SAR Publisher also sells this textbook in the US. Suppose SAR Publisher can produce this textbook at a constant marginal cost of $20 per copy and the demand curves for the two markets are given by: QUS = 48, 000 - 600PU

    Open & closed economies

    1. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. What is marginal propensity to save of this economy? *It looks as though enough information has not been provided.* 2. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a margina

    Supply Chain Inventory Management Question

    Give an personal example of a reverse logistics system you've experienced as a consumer. Were you satisfied with the cycle time of the process and what steps did the company take to guarantee your satisfaction. Finally, answer the question as to whether you are more likely to quit patronizing a company because of their reverse o

    Calculating Profit Maximization & Cost Functions

    Suppose there are three firms with the same individual demand function. This function is Q = 1,000 - 40P. Suppose each firm has a different cost function. These functions are: Firm 1: 4,000 + 5Q Firm 2: 3,000 + 5Q Firm 3: 3,000 + 7Q a) What price should each firm charge if it wants to maximize its profit (or minimize

    Opportunity cost for production

    Let's say, country A and country B both consume and produce only food and clothing. Both countries use only labor to produce these two products. A worker in country A can produce 6 units of clothing or 10 units of food each day while a worker in country B can produce 4 units of clothing or 8 units of food. Would opportunity

    Dulles Toll Road Elasticity

    The year is 2007, and the price elasticity of driving on the Dulles Toll Road is 1.6. The owners of the Dulles Toll Road raise the cost of a one way trip to $8.50. The revenue from the toll increase is not as large as the owners forecasted. Should they have set a lower or higher toll? Higher, because demand is elastic


    A bookstore opens across the street from the University Book Store (UBS). The new store carries the same textbooks but offers a price 30 % lower than UBS. If the cross-elasticity is estimated to be 1.5, and UBS does not respond to its competition, how much of its sales is it going to lose?

    Economics Question

    I need help with this question. I think the customer will carry the burden but not sure. I believe the answer has something to do with elasticity as well. Not sure how to tie it all together. Question: Who would bear the brunt of a national sales tax on tobacco products? Why?

    Calculating Quantity Demanded and Determining Demand Curve

    Gurgling Springs, Inc., is a bottler of natural spring, Inc. is a bottler of natural springs water distributed throughout the New England states. Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains. Operating experience during the past year suggests the following demand fun

    Short-Run Firm Supply

    Farm Fresh Inc supplies sweet peas to canneries located throughout the Mississippi river Valley Like many grain and commodity markets, the market for sweet peas is perfectly competitive. With $250,000 in fixed costs, the company's total and marginal costs per ton (Q) are TC=4250,000 = $200Q + $0.02Q2 (2 = Square because In d

    Source Bias

    New source bias can exist for stationary sources. Discuss why this bias leads to a solution that is not cost effective. What policies might eliminate this bias?

    Opportunity Cost for Profit Maximization

    The New York Times, a profit maximizing newspaper, faces a downward-sloping demand schedule for advertisements. When advertising for itself in its own pages, (for example, an ad saying "READ MAUREEN DOWD IN THE SUNDAY TIMES"), is the opportunity cost of a given-size ad simply the price it charges its outside advertisers?