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Assume that the interest rate is 10%. Explain whether you would prefer to receive (a) $ 75 one year from now, (b) $ 85 two years from now, or (c) $ 90 three years from now? Would your answer change if the interest rate is 20%? Show how you arrive at your answers.
Derive firm ones and firm twos best-response functions. Illustrate and solve for the output levels that constitute the Nash equilibrium. Solve for the market price at the Cournot-Nash equilibrium. Solve for firm-one and firm-two profits at the Courno..
Elucidate whether each of the following events shifts the short-run aggregate-supply curve, teh aggregate-demand curve, both, or neither.
In terms of the law of contract can they sue Mr Patel for the cost of R17 000.00 that they are now required to pay to rectify the errors. Assume that the electrical compliance boards report is correct. Do you think Mr Patel has any defence to the cla..
What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
Which of the following terms express a person who risks his or her financial resources by investing it in the hope of making a profit.
assuming economy is in a long run equilibrium, show fraction of total output earned by labour and fraction of total output earned by capital. Explain why, in long run, firms make zero economic profits in this economy.
If Anne is planning to invest her loan in an asset which she hopes to turn a profit on, Illustrate what is the minimum rate of return she needs to earn.
Use separate graphs to sketch two indifference curves for people with each of the following utility functions.
A local community voting to raise property taxes to increase school expenditures
Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.
Elucidate how much of the tax is borne by consumers also Elucidate how much by producers. Illustrate what is the new CS also PS.
When the monopolistically competitive firm lowers price from $16 to $12, elucidate how much does total revenue change.
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