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Discuss the conditions that characterize pure competition (a price taker market) and explain how and why price takers maximize profits at the quantity for which marginal cost, price, and marginal revenue are equal.
Suppose the commodity market and the money market for an economy are described throughfollowing IS and LM curve.
Matt is a 25 year old engineer, and his salary next year will be $60,000. Matt expects that his salary will increase at a steady rate of 5% per year until his retirement at age 65. If he saves 10% of his salary each year and invest these savings a..
Sketch a graph of demand and supply curves that shows the effect of an increase in rainfall on the equilibrium price and quantity of corn. Do price and quantity increase or decrease?
Illustrate what happens in the market for apartments when the government institutes a price ceiling that is lower than the market price. What could be some actions taken by renters and landlords when dealing with a price ceiling.
Suppose that a firm that is expanding its output has a very large total fixed or sunk cost. What will happen to its average total cost as it expands output Can you think of any firms or industries in which this is likely to happen
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
A contry's currency will depreciate if its inflation rate is less than that of its trading partners.
Consider a monopolistic firm producing a good with the following cost funciton C(y) = ay where a > 0. The firm faces the following demand function D(p) = Bp-n where B, n > 0. This kind of demand function is known as CES (Constant Elasticity of Substi..
Money must have material backing to have value. Justify your response. Take a stand on whether or not it would be easier for the Federal Reserve to expand the supply of money in a period of prosperity versus in a period of recession.
you are given the following information. the current dollar-pound exchange rate is 2 dollar per pound. A u.s. basket that costs 100dollar would cost 120 dollar in the UK. For the next year , the fed is predicted to keep US inflation at 2% and the ..
You and a friend are in an Italian restaurant and the owner offers both of you an 8- slice pizza under the following conditions: each one of you must simultaneously announce how many slices you would like to have (i.e., each player i is belong {1,..
an economist might say that collage and universatys "produce" education, using facilty members and students as inputs. According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one..
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