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1.Why might it make sense for a firm which cannot sell its output at a profit to continue in production for the time being? For how long should the firm continue to produce at a loss?
Illustrate the deadweight loss from charging a $10 admission fee. Explain why charging $10 is inefficient, and calculate the size of the deadweight loss.
1. Why may an expansion of the money supply have a relatively small effect on national income?2. Why may any effect be hard to predict?
Beta Industries produces floppy disks that customers perceive as identical to those produced by numerous other manufacturers.
1.What factors could cause a rise in the market rate ofinterest?
case 1 - demand estimation and elasticity soft drinks in the u.s.nbspnbspdemand can be estimated with experimental data
What is the maximum capital cost of the conversion unit for which a refiner should proceed with the investment - Change the price delta for Jet Fuel & Kerosene from ($5) to zero. What is the maximum viable capital cost now?
How would your answer to question 3 change if you were told that the data represent 10 different plants during a particular month of the year?
Criticize the classical theory that higher government spending will necessarily crowd out private spending.
If the market price of common stock of a real estate company is 6 million and the value of its debt is 4 million with a beta of 1.5 and the risk premium on the market is 6 percent and the treasury bill rate is 4 percent
1.At what phase of the business cycle is the average duration of unemployment likely to be the highest? Explain
Assume that countries in the Eurozone decide to pursue a deflationary fiscal policy. What effect is this likely to have on the UK economy?
1.Do any groups of people gain from inflation?
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