EBK INTERMEDIATE MICROECONOMICS AND ITS
EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 7.6, Problem 1MQ
To determine

To discuss the reason of SAC exceeding AC for all level of output except q*.

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Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true.  Zero economic profit implies zero accounting profit.
Student tuition at ABC University is $500 per semester credit-hour. The state supplements school revenue by matching student tuition dollar for dollar. In other words, for each dollar a student pays in tuition, the state pays a dollar that is also considered revenue. Average class size for a typical three credit-hour course is 25 students. Labor costs are $3,000 per class, materials costs the school $25 per student per class and overhead costs are $15,000 per class. For this problem, ABC University measures output as the total amount of revenue generated.   a) What is the multifactor productivity performance for a course at ABC University?   b) If instructors work an average of 10 hours per week for 16 weeks for each three-credit hour class of 25 students, what is the labor-hours productivity ratio?   c) Suppose next year, the tuition increases to $550 per semester credit hour but the state only pays $100 per semester hour instead of the matching it had previously paid. The instructors…
The text said that raising a number to an odd power was a monotonictransformation. What about raising a number to an even power? Is this amonotonic transformation? (Hint: consider the case f(u) = u2.)
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