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Image that the mayor has hired you as a consultant to evaluate the increase in aggregate demand in the city where you live. Describe to the mayor one (1) aggregate demand and supply factor that would have the greatest impact on the economy of your city.
Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month. Explain your reasoning.
Say half of the cost of producing wheat is rental cost of land (a fixed cost) and half is cost of labor and machines (a variable cost). If the average total cost of producing wheat is $8 and price of wheat is $6, what would advise the farmer to do..
trade in genetically modified crops. suppose the residents of a country become fearful of using genetically modified
Globalization is inevitable and will continue to occur in the years to come. As organizations continue to globalize, cultural differences on ethical issues will continue to arise.
My Kitchen Delights (MKD) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is equal. Assume that the annual holding cost is 30% of the unit price. Monthly demand averages 20,000 jars. O..
(b) Suppose that the firm is a monopolist. Assuming the firm produces a positive level of output, calculate the output and price it sets. Explain why the profit-maximizing price is greater than the monopolist's marginal cost.
When McDonald's corp. reduced the price of its big mac by 75% if customers also purchased french fries and a soft drink. The Wall Street Journal reported that the company was hoping the novel promotion would revive U.S sales growth.
Evaluate a pricing decision your company made.
A $2.50 decrease in the price of the $17 salmon entrée increased sales from 40 to 75 meals per week. Which entree should he choose to put on sale?
Assume that the cost of electricity from a natural gas plant is 5 cents per kilowatt-hour and that the cost of concentrating solar power (e.g., production from a plant like Ivanpah) is 13 cents per kilowatt-hour. Based on our discussion of the ex..
Assume that all consumers have identical demand curves for local telephone service, and the producer of such service is a monopoly. Compare price, output, profit and consumer surplus when (a) the monopoly set a uniform price fir the product. (b) t..
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a. use the theory of liquidity preference to illustrate in a graph, the impact of this policy on the interest rate. b. use the model of aggregate demand and aggregate supply to illustrate the impact of this change in the interest rate on output and..
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