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The demand for Professor Bongmore's new book is given by the function Q = 5,000 - 100p. If the cost of having the book typeset is $9,000, if the marginal cost of printing an extra copy is $4, and if he has no other costs, Calculate total revenue, total cost and profits at these Q* and P*.
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day.
Agricultural markets are often cited as exhibiting the characteristics of the perfect competition market structure. Does farming fit this model?
Customers to Live Theaters, Inc. can be divided into two groups: seniors and everyone else. The inverse demand curves for each of the two groups are given below. The marginal cost (which equals the average variable cost) of serving an additional p..
As in the case of oligopoly markets, rivals may select to compete aggressively, non-aggressively or in non-price dimensions.
Explain What the profit maximization condition of a business. What is normal versus supernormal profits.
Level of GDP per effective worker and explain whether this economy is following the Golden rule
What is the difference between the auto industry of the 1950's and today. Has consumer surplus been affected in any way due to the changes in the auto industry structure, and if so, how?
Explain how do you plan to use this while making decisions about public expenditures.
Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
Provide an economic explanation of EACH of the changes you have shown in your diagram above. Be sure to discuss any adjustment process that occurs during the transition period from the economy's initial steady state to its final steady state.
For each hour of work, the employer deducts $1 and sends the money to the city government. The initial wage (Before the tax) is $10, and total employment is 20,000 hours per day. Use a graph to show the effect of the tax on the equilibrium wage an..
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