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Consider a perfect competitive market. Analyze in detail using graphical tools what would happen to the number of firms and firm profitability in short run and long run if demand for product falls and if it rises.
Macroeconomics, Economics
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Question - A firm has two variable factors and a production function, f(x 1 , x 2 ) = x 1 ½ x 2 ¼ . The price of its output is 4. Factor 1 receives a wage of w 1 and factor 2 receives a wage of w 2 . (a) Write an equatio ...
Question - Find a current example of a linear optimization model used in your industry. Describe the industry's needs, including any unique factors, how the linear optimization model was used, and the problem or challeng ...
Question: Explain why the market fails to provide optimal quantities of: i) Positive & negative externalities ii) Public Goods iii) Common Property Resources The response must be typed, single spaced, must be in times ne ...
Question - a. A firm producing two products X and Y where x and y are the quantity of product X and Y produced respectively. If the firm produces on the same isocost and has a fixed cost of $1000. Given the marginal cost ...
Question: When other firms react Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned th ...
Question: A firm faces the following demand curve: P = 120-0.20 * Q, and MR = 120 0.01 * Q. The firm's cost function T_C = 60 * Q + 25,000; MC = 60 (it is constant over all levels of output. If the firm maximizes profit, ...
Economics Assignment - Topic: Evaluation of Macroeconomic performance of Australia and New Zealand. Task Details: Complete a research-based analysis and evaluation of the relative macroeconomic performance of Australia a ...
Question - Jack's faces the following demand function for its Jack in the Boxes: Q = 13000 - 8P. Jack produces the Jack in the Boxes in two facilities. The cost functions in each facility are: TC1 = 110,000 + 40Q1 + .09Q ...
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