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Suppose that a competitive industry is in long Run competitive equilibrium. Then the price of substitute good (in consumption) decreases. What will happen to the short run to
1.The market demand curve? 2. The market supply curve. 3. Market price? 4. Market output? 5. The firm's output? 6. The firm's profit?
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
Using the following data calculate Disposable Income:
What are the macro and micro problems? What systems are affected structural, psychosocial, technical, managerial, goals?
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
How many cases of peaches will be produced per week during the growing season, and what will the selling price per case be if producers ignore the marginal external costs imposed on others?
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
Discuss how labor market mobility affects the unemployment rate.
Read the following text and answer the questions below: Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
How do you think each of the following affected the world price of oil? (Use demand and supply analysis.)
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
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