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What does Friedrich Hayek have to offer in terms of how prices inform customers?
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Advocates of active stabilization beli..
A three-person committee has to choose a winner for a national art prize. After some debate, there are three candidates still under consideration:
Illustrate what way might society gain if Fed implements policy you have proposed instead of simply permitting long-run adjustments to take place.
a. What is the Pre-Regulation equilibrium quantity and price? b. What is the Post-Regulation Equilibrium price and quantity?
Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Suppose that the..
If the risk free rate of return is 5% and the expected return on the international market portfolio 14%, what is the firms WACC?
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: Cashews, pecans and almonds. Suppose that on January 1st 2105, cashews sold for $12.50 per pound, pecans were $4.00 per pound, and almonds w..
Following are the num- ber of times the machine was used daily over each of the last 30 days. Determine the mean number of times the machine was used per day.
You are the manager of a monopoly. The consumer’s inverse demand function for your firm’s product is P = 100 –20Q, and your cost function is C (Q) = $20Q. Part a Determine the optimal two part pricing strategy. Part b How much additional profit do yo..
Abe’s marginal utility of apples is 12 and his marginal utility of bananas is 5. If apples cost $2 each and bananas cost $1 each, is Ape consuming at an optimum? If not, which fruit should Ape consumes more of?
You are the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees. What raised in the joint session of the subcommittees.
Monopolistic competition means: Similarily, the movie You’ve Got Mail features a successful small bookstore competing with a new book superstore around the block. The big superstore offers large discounts, while the small independent bookstore has be..
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