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In a competitive business environment, firms are said to break-even in the long-run. What does this exactly mean, and why does it happen? In answering this question, differentiate specifically between the short-run and the long-run. Does this long-run break-even outcome apply to all market structures, and why?
Suppose that the public wishes to hold $0.35 in pocket money (currency and coin) and $0.25 in time and savings deposits. Suppose that banks wish to hold $0.20 for each new dol
Many papers look at the impact of credit frictions onto business cycles, and they almost unambiguously find that credit frictions work as an amplification mechanism of other s
Which of the following is the proper value to use as the " first cost" of the defender in a replacement analysis? Which of the following is a replacement repeatability assumpt
A farmer uses three inputs to produce vegetables: land, labor, and capital. The production function for the farm exhibits diminishing marginal rate of technical substitution.
Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising. Calculate consumer surplus at the profit-maximizing pric
Assume that the eurozone risk free interest rate n bonds with one year to maturity is 4.78 percent and the U.S. risk free rate on one year bonds is 3.15 percent. The currenct
"War is the collective pursuit of a dangerous activity. But the collective pursuit occurs person by person. Why do individuals participate in war, whether voluntary or conscri
When you buy a good in the market place, some one is selling it to you. Thus, when you go to work, you sell yourself. True, False, Explain. What is the opportunity cost of pai
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