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If firms in a monopolistically competitive industry are making an economic profit, Select one: a. all of the answers are correct. b. price is higher than marginal cost. c. new firms will enter the industry. d. economic profit will fall in future periods.
Lets denote the price of a nonmaturing bond (called a consol) as Pb. The equation that indicates this price is Pb = l/r, where l is the annual income the bond generates and r is the nominal market interest rate. Suppose that the bond promises the hol..
In this assignment you will apply consumer choice theory and marginal analysis to business problems. Explain how your own current household budget, tastes and preferences, and future expectations determine how much of each of these products you purch..
Taxes on goods and services like alcohol, tobacco, and gambling winnings (and maybe someday sugary foods and marijuana) are levied to reduce consumption of such goods and to raise tax revenue (
If the rate of money growth and the growth rate of the real GDP were the same in both countries, the explain how would the rate of inflation differ among them.
Can we say that the plant in country b is more efficient than the plant in country A? Discuss in terms of both technology and economic efficiency.
Define benefit and cost externalities. Explain why situation involving benefit externalities tend to result in an under allocation of society’s scarce resources.
What is the current rate of inflation or deflation? Which one do think might be more disruptive for an economy, and why? Describe a policy in the AS-AD model that would reduce inflation from the current level. Do you the U.S. should adopt this policy..
Why do you think students with disabilities are targeted for bullying by their peers at a higher rate than non-disabled students? Do you think incidents of bullying are increasing, or that our educational system is just getting better at spotting and..
illustrate what does the efficient market hypothesis say will happen to the price of the stock when the $4 loss is announced.
The Deering Manufacturing Company's short-run average cost function in 2012 was AC = 3 + 4Q where AC is the firm's average cost (in dollars per pound of the product), and Q is its output rate. Derive an equation for the firm's marginal cost function.
Compute the value of deadweight loss with the new demand curve to verify your intuition about the answer to the previous question.
Suppose further that the MCP is 0,8 if the government wants to increase the real GDP to 2000 billions, by how much should the government increase /decrease its lump-sum taxes? Assume the price level is fixed.
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