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State whether each of the following events will cause a movement along the demand curve for Big Mac or whether it will cause the demand curve for Big Mac to shift? If the demand curve shifts, indicate whether it will shift to the left or to the right in each of the following scenarios. Briefly explain why particular shift occurs.
1. Fast-food restaurants post nutrition warning labels.
2. The U.S. economy enters a period of rapid growth in incomes
Describe in one short paragraph what the Leontief input-output model in Economics is about. State the meaning of the variables. The solution involves an inverse. State this inverse.
A monopolist operates in an industry where the demand curve is given by Q=1000-2p. The monopolist's constant marginal cost is 8 dollars. What is the monopolist's profit maximizing price? How much does the monopolist produce? What are its profits?
Illustrate what is the reorder point for part if the reorder point is expressed in terms of the inventory on hand rather than the inventory position.
An industry can be characterized by the following production function. Explain how would you characterize the returns-to-scale in the industry.
Illustrate what are the advantages and disadvantages of acquiring inputs through this means. Give example not used in the textbook that uses this method of processing.
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
Assume the operations manager at the company you own prefers to put in low effort rather than high effort. In order the manager to exert high effort, his expected financial gain must be at least $60,000 higher than if he puts in low effort. Discuss t..
Green Futures operates a solar panel power generation facility in Scottsboro, Alabama. The current field generates 12 million kilowatt-hours per year, but every year production drops off by 1 million kilowatt hours, as dust and droppings accumulate o..
Assume that the Fed decided engages in an open market purchase of $100 million dollars. If the required reserve ratio is 10%, and if banks hold an additional 2% of their assets in bonds, calculate the total change in the money supply.
For a normal good, the income and substitution effects
How does this policy affect the total quantity of investment? The quantity of business investment? The quantity of residential investment?
According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling ..
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