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"Because agricultural demand is inelastic, a technological advance that lowers costs will reduce total revenues. Thus, farmers have no incentive to adopt such new technology." True or false? Explain
What are price floors and price ceilings? How could a business maintain its level of profitability if forced to accept price ceilings? Use a business in your response. For example, a coffee shop could ... Please do not use a coffee shop in your examp..
Due to monetary policy and fiscal policy intervention by the Federal Government since the 1950s business cycles
Give two examples of externalities connected with consumption and saving that can be used in arguing for policies aimed at increasing U.S. personal saving. Explain why they can be used that way. Explain what a traditional I.R.A. is. Explain how it in..
Leading Auto Company was established in 1920. From its founding days, the company has built its reputation on producing quality vehicles at an affordable price.
Using an aggregate demand and supply diagram, explain how each of the following scenarios affects the equilibrium price level and aggregate output. Consider first the short-run, then the long-run equilibrium for each scenario.
If the firm's price elasticity of demand is equal to -2 (or 2 in absolute terms) illustrate what price should the firm charge in order to maximize profits
If elasticities for a bottle of water are -0.8 and -1.2 in two different locations and marginal cost is the same, which location is likely to charge higher price for the bottle of water?
Sketch the firm's isoquant and isocost lines and show its current equilibrium in the use of labor and machines when producing 200 gizmos per month.
Consider an economy with its production possibilities represented by. Suppose the economy starts with a capital stock at time t = 0 equal to 1 unit. Write down the values of gross investment, net investment, capital, consumption, and output observed ..
A sum of money invested at 10% interest, compounded quarterly, will quadruple in amount in approximately how many years?
Suppose a person has $20 to spend on music and likes both rap music (R) and country music (C) with a set of preferences so that U=C^1/2R^1/2. Suppose that the iTunes price of a rap music song is PR=2 and the price of a country music song is PC=1. Wri..
The legislative branch of the American government is bicameral. In a minimum of at least two well-written paragraphs, define and discuss the advantages of a bicameral legislature, including how and why this came about. Reference should be made to the..
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