Tara runs the only one-hour photo lab for 300 miles around, in an isolated west Texas town. Her lab technician explains to Tara that she is not producing the level of output that would minimize her average total costs. The lab technician tells her that

she should lower her price in order to increase her number of customers. Tara rejects her technician's analysis. Why doesn't she take her technician's advice?

Tara has a monopoly in one-hour photo processing, and monopolists do not care whether or not they
minimize their average total cost. Tara's goal is to maximize profit. As long as she can maximize profit, she
doesn't care whether or not she minimizes average total cost.

Economics

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Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S0 to S2?

A) a fall in foreign interest rates B) a fall in the U.S. interest rate C) a rise in the U.S. exchange rate D) a fall in the U.S. exchange rate E) a rise in expected future U.S. exchange rate

Economics

The interest rate is the opportunity cost of transferring spending power between time periods. However, the market mechanism may fail to provide adequately for future economic growth. List the reasons why a market might fail

Economics