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In the short run, shouldn't one produce as long as fixed costs are being covered? I'm confused on this. Which costs should you be concerned with for the short run? Fixed, total, average variable, ov
The degree of operating leverage can be defined as A. the change in profit for a $1 change in quantity B. the change in quantity for a $1 change in profit C. the percentage change in quantity for a gi
The initial price of a cup of coffee is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500. a. Calculate the (arc) price elasticity
a. Determine the point at which diminishing returns occurs. b. Indicate the points that delineate the three stages of production. c. Suppose the market price of tuna is $3.50/pound. How many fishermen
Q1. Determine the firm's profit-maximizing Quantity Q, Price P, and economic profits or losses. Q2. If this firm operates in a monopolistically competitive market, what will happen in the long-run to
What is the total fixed cost for the El Dorado Star? If total fixed cost increases to $5000, how many papers should be printed and sold in the short run? What should the owners of the St
This situation is possible particularly for firms with high fixed capital costs. The long run price must cover out of pocket costs such as labour, materials, equipment, taxes, and other expense, alo
Many economists argue that more research, development and innovation occur in the oligopolistic market structure than in any other. Why?
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is C(Q)= 10 + 2Q + 0.5Q2. a. What level of output should you produce in the short ru
Mr. Smith, has fallen behind on his work, he has asked you to help prepare a letter for a local business/economic project. Your local city is trying to attract a new garbage processing facility in a
You must post a memo which you explain the factors that contribute to the elasticity of goods. You must also incorporate a real-life example of price elasticity of demand, and discuss how it impacts
a) Algebraically determine the short-run profit maximizing price and quantity. b) Algebraically determine the maximum profit accruable to the firm.
Assume Amanda Herman finds that her total spending on compact dics remaing the same after the price of compact fall, other things equal. Which of the followin is true about Amanda's demand for compa
How has the disaster caused such a drastic price rise in the short-run and how will the outcome be different in the end. How would I show this in an economic model?
According to the Harberger model of the incidence of the corporate income tax, the tax:
What are voluntary export restraint (VER) agreements? Why do some governments force foreign exporters into them instead of just using quotas or tariffs to restrict imports by the same amounts?
Suppose a firm is operating at the minimum point of its short-run average total cost curve, so that marginal cost equals average total cost. Under what circumstances would it choose to alter the siz
An airline ticket costs the same from Casper, Wyoming to Denver, Colorado, and from Denver to Orlando, Florida. Does this make economic sense and if so what is rationale behind equal prices for uneq
The Theory of the Firm document, the Friedman article, argue that the main goal of a firm in a market economy is to maximize profit (shareholder wealth) over the long term.
In 1989, the Detroit Free Press and Detroit Daily News (the only daily newspapers in the city) obtained permission to merge under a special exemption from the antitrust laws. The merged firm continu
"If we return the manufacturing operations to the United States," he says, "what types of short-term and long-term variable and fixed costs should we consider? What costs should we expect if we stay
It costs $6 to produce and distribute each channel. The cable company can sell each separately, sell them as a bundle, or both. a. What bundling pricing strategy would you recommend? b. What would be
The Effect of Market Concentration and The Monopolist Is Not the Best Environmentalist’s Best Friend: An Example , choose a major airline city pair (i.e., two major cities with a lot of flight
Having identified the strengths and weaknesses of your research program and resources in previous discussions, you will explore the impact of your methodology on your conclusions.
What do you feel are the benefits and the cost to having free trade? What are the benefits and cost to having restricted trade?