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Show that the rate of population growth has no effect on the equilibrium growth rate of the economies studied in Sections 11.1 and 11.2. Explain why. Do you find this prediction to be plausible?
A firm in a purely competitive industry is currently producing 1200 per day at a total cost of $ 600. If the firm produced 1000 units per day, its total cost would be $ 400, and if it produced 700 units per day, its total cost would be $ 375.
Why might the above relationship signal a recession? Why might it not?
The products are being made by a machine that currently costs $100,000 and produces a 1000 units during its lifetime after which it needs to be replaced. The machine can be replaced by a larger one that produces proportionally larger number of uni..
The state Medicaid agency has set a rate of $5.50 per visit for all Medicaid enrollees who visit a physician. Each physician also has private paying patients. The demand curve for each physician can be characterized as follows
Suppose the inverse demand for a product is Q = ?P 1/2 + 10. Write the expression for the demand curve, i.e., P = f(Q). What kind of expression is this?
Would you expect equilibrium income to rise or fall as a result of this change? Why? Check your answer with the following example: Suppose that, initially, c .8, t .25, and Y0 600. Now let ? 10 and ?TR 10.
Suppose that as the economic recovery strengthened consumer expectations of annual inflation increased from 2% to 3.5 % and, at the same time, the expected real rate of return required to equate investor demand to the existing supply of 1 year.
what allows companies to distribute the same prescirption drug for two different prices Why dont competitiors under cut their price in the Western countries (i.e. United States)
profit contribution analysis. Kathy's Bakery is a full -service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. She is considering an attempt to differentiate her shop
PC Connection and CDW are two online retailers that compete in an internet market for digital cameras. While the products they sell are similar, the firms attempt to differentiate themselves through their service policies.
Etta and Moorea run a stand where they sell lemonade and brownies. Their cost function is \(C(Q_{L}, Q_{B})= .50Q_{L}+0.25Q_{B}+Q_{L}^{2}+Q_{B}^{2}-Q_{L}Q_{B}\) They can sell a cup of lemonade for $1.20 and a brownie for $0.95. What a..
A CNC machine was purchased for $120,000 and has a five-year depreciable life. The shipping and handling cost were $15,000. The annual operational cost of the system is $10,000. The estimated salvage of the machine is $20,000 at the end of five ye..
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