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Reconsider the "double marginalization" model. Show how the upstream firm can use a two part tariff when selling inputs to the downstream firm to achieve the same level of profits as under vertical integration.
From time to time it has been proposed that a law or constitutional amendment be passed that will force the federal government to balance its budget every year. How would such a requirement affect the conduct of discretionary fiscal policy? Automa..
Say half of the cost of producing wheat is rental cost of land (a fixed cost) and half is cost of labor and machines (a variable cost). If the average total cost of producing wheat is $8 and price of wheat is $6, what would advise the farmer to do..
What does the market for sugary sodas look like? Provide a supply-demand graph with realistic prices.
Within your supplemental readings for this semester, there are several discussions of the Keynesian multiplier. In the minds of the critics that you read, which is not a deficiency of the multiplier concept
cost function for clinic visits in a small inner city clinic Quantity of Visits Total Cost per Week If the price per visit is given to be $25, at what level of visits will the maximum profit position be.
When the price of a superior good increases, consumers demand more of it. As consumer income increases a larger percentage of that income is spent on superior goods.
Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.
what happens to the AFC per paper, the MC per paper, and the minimum amount that you must charge to break even on these costs?
How much labour should be allocated to plant Alpha and to plant Beta? And, at the best allocation, what is the output produced?
why Banks are exposed to interest rate risk primarily. what does the Federal funds market involves.
For a range of interest rates from 5% to 25% would your advice concerning whether to proceed with the project change?
Use a diagram to show the effects of weak exports and investment on actual versus potential GDP in the Canadian macroeconomy and how might the announced trade deal with the European union provide a source of optimism?
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