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Explain excess capacity theorem with a diagram.
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- Please answer the correct answer ASAP please calculation please Don't answer by pen paper please ASAP The market for bananas is also perfectly competitive. Each banana-growing firm has cost function C(Q)=145+ 20Q+0.75Q2. The aggregate demand for bananas is 1500-2P. Find the long-run aggregate quantity of bananas sold in this market.In 2009 General Motors (GM) announced that it would reduce employment by 21,000 workers. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)? Why didn’t GM reduce employment by more than 21,000 workers? By fewer than 21,000 workers?Give the area that represents the following Total CostTotal Variable CostTotal Fixed CostTotal RevenueProft/Loss Area
- On Aug 28, 2023 the Factory Efficiency Index (FEI) closed at 10,572.02; the day before it closed at 10,583.96. Which of the following statements about that performance is/are true? FEI rose 11.94 basis points FEl fell 0.11 basis points FEl fell 11.94 basis points FEl fell 11 basis point FEl rose 11 basis pointsDescribe the situations under which a firms capacity must lag and lead to the demand ?Consider a perfectly newspaper market with identical firms, each with the usual shaped cost curves. (1) The government imposes a (permanent) $2 per-newspaper subsidy on the market. What is the impact of the subsidy on the newspaper market? Make sure to distinguish between the short-run and the long-run impacts. (2) If demand permanently decreases, what is the impact on the newspaper market? Make sure to distinguish between the short-run and the long-run impacts.
- State whether the following statements are correct or not and briefly explain why A. Diseconomies of scale justify horizontal expansion of firms into unrelated fields. B. Economies of scale lead to a downward sloping marginal cost curve C. Elasticity of demand remains constant throughout the product cycle.Solve for the short-run profit maximization problem for f(x1, x2) = 2x1 + x2 and f(x1, x2) = min{2x1, x2}, holding x2 at x2*, and taking real factor prices w₁ and w2 as given.Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for pears. (Note: Place the points of the line either on H and K or on H and N.)
- The slope of an iso-revenue line is determined by?Explain the logic that guides shifts of a linear supply function?Hello, I would like to request help with the below discussion question for my Quantative Analysis class. For a certain company, the cost function for producing x items is C(x)=50x+150 and the revenue function for selling x items is R(x)=-0.5(x-130)^2+8,450. The maximum capacity of the company is 180 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit! Answer to some of the questions are given below so that you can check your work. 1. Assuming that the company sells all that it produces, what is the profit function? P(x)=_____________ 2. What is the domain of P(x)? 3. The company can choose to produce either 80 or 90 items. What is their profit for each case, and which level of production should they choose? Profit when producing 80 items = _____________ Profit when producing 90…