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The marginal propensity to consume is equal to 0.80. An increase in household wealth causes autonomous consumption to rise by $10 billion. By how much will equilibrium real GDP increase at the current price level, other things equal?
In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program.
A price-taking ?rm selling in a market with a price greater than the ?rm's average total cost should:
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be c..
Most nurses in the United States receive their education in community colleges. Mainly because of differences in class size, the cost of educating a nurse is about four times that of an average community college student. Community college budgets dep..
A process plant making 4000 tons per year of a product selling for $0.80 per kg has annual direct production costs of $2 million at 100 percent capacity and other fixed costs of $700,000. Construct the break-even chart for the process. Determine the ..
What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..
q1. elucidate how a person who refuses an offer of employment in order to keep looking for a better job is counted by
What does the economy look like when the economy is in an unemployment gap? What type of unemployment rate is it compared to the Natural Rate of unemployment? What about inflation?
Maintenance expenses for a bridge on the ohio river are stimated to be $20,000 per year for the first 8 years, followed by two separate $100,000 expenditures in years 12 and 18. the expected life of the bridge is 30 years. If i=6% per year, what is t..
Use the theory of transaction costs to justify protecting the following rights by injunction or damages: Suppose that two people choose to litigate a dispute. Should the law presume that if two parties are prepared to litigate, transaction costs must..
On a single graph draw marginal cost curve, average total cost curve and average variable cost curve for a typical firm. Explain how area that represents profit or loss this firm will earn.
In february 2014, hostilities escalated between Russia and Ukraine over Crimea. Predict the effects of these hostilities on the exchange rate between the U.S. dollar and the Russian Ruble
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