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Explain why it is not sensible to close a business firm if it earns zero economic profits. Under what circumstances might you expect the demand curve of the firm to be vertical, horizontal, and positively sloping?
Please explain in details.
After the Federal Reserve increases the growth rate of the money supply, what is the new total spending growth rate? Now think about the point that the economy ends up at that is the new long run equilibrium. What is the value of expected inflation f..
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way. Support your conclusions with references to the textbook and other resources.
Elucidate what prices he should charge in two markets. Illustrate quantities be should sell in the two markets.
The total payment of resource income in the economy is equal to the total value of the output. In the simple circular flow model, if planned I exceeds planned S, then. The level of total output and the price level can be affected by changes in consum..
In the replacement analysis under various circumstances. Briefly summarize what your text calls Techniques 1 (Is Appropriate When Replacement Repeatability Assumptions Hold), 2 (If the replacement repeatability assumption holds, compare EUAC of the d..
The administration and management of tax and subsidies should be the tool for achieving fiscal policy toward economic stabilization and growth. Explain it in details and with examples.
Probability calculation Involving Random Events These calculations involve the use of the empirical rule since all elements available for selection have the same chance of being chosen. Quantify the events, the Event to be calculated and he sample sp..
Caroline has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm’s website in exchange for someone doing their tax returns. Which of the following principles of economic in..
True/False questions: The Durbin-Watson (DW) statistic is used to detect first order-serial correlation. Positive lag 1 residual autocorrelation is associated with DW values greater than 2. Autocorrelation exists when successive observations over tim..
In which of the following situations would you prefer borrowing?
The XYZ corporation is currently producing 1000 units of output. The marginal cost of one additional unit is $10. The resulting marginal revenue from selling that unit is $12 is the firm maximizing profits? If not, should it produce more or less?
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/10,000, making the marginal revenue MR=1.70-Q/5,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. Variable cost is 0.80Q..
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