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Suppose that you bought an asset that pays 6% nominal interest rate, you expect that inflation rate to be 1%, and the actual inflation is 4%. Calculate the expected real interest rate and the actual real interest rate.
Toys unlimited LTD., must predict sales for popular adult computer game to avoid stockouts or excessive inventory charges during the upcoming Christmas season.
Is the following statement correct or incorrect: "If a firm operating in a monopoly or imperfectly competitive industry is trying to maximize profits, it will always charge the highest price that the traffic will bear." Explain why or why not.
Assume that more firms receive permission to drill for oil in Alaska and United States controlled waters. In addition, suppose that the popularity of SUVs declines in favor of smaller, more fuel efficient automobiles.
Monetarists believe that changes in the money supply will have no effect on real income in the long-run. In other words, they believe that money is ‘neutral' in the long-run. How does this long-run neutrality come about
The similar same set of price quantity combinations are utilized to compute the price elasticity of demand
Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchisees that operate from commercial buildings. Make sure your explanation is consistent with the fact that franchised tutoring services.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should
A company in a purely competitive industry is currently manufacturing 1200 units per day at a total cost of $600. If the company purchased 1000 units per day,
Apart from the abundance of these resources, you also see a lot of poverty. Can you provide an economic explanation of why poverty exists
(a) What is mean by that Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly. (b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market
Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to
Consider a nation with an economic structure consistent with assumption of classical model. Assume that businesses in this country suddenly anticipate higher future profitability from investments they undertake today.
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