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Now assume that the price of tablet cases drops by 50%. How would this change impact the demand for tablet cases? Explain your answer and reconstruct the graph developed in question one to show this change.
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed. What are the different price points. Using this information, draw a fully labeled graph of the market for movies in ..
Assume that the firm buys a machine for each worker that increases the marginal productivity of each worker, which would be reflected by an increase in the total product, marginal product, and value of marginal product columns.
Explain how you would implement the strategy you have recommended for the company. What substantive, specific steps should the company take to implement the strategy?
Why does taxing a product lead to deadweight loss? Use an appropriate graph to explain why the deadweight loss is greater the more elastic the demand for a product.
Kellogg Company (you know them as Kellogg's, makers of Rice Krispies, Corn Flakes, and a variety of other cold cereal products) celebrated its 100th anniversary a few years ago in 2006. As with many companies, it has attempted to expand internatio..
What are the macroeconomic consequences of a budget deficit when the economy is operating at full employment? Be sure to discuss the effects in the short run and long run.
A monopolist is currently hiring 5,000 units of labor. At this level, the marginal revenue of output is $10, the (fixed) wage rate is $300, and the marginal product of labor is 50. In order to maximize profit, the firm must
1. How do you know that the firm represented in the graph above is a purely competitive firm 2. To maximize profits, this firm will produce at what output level (one letter) 3. Explain why this MR=MC position is the profit-maximizing position for any..
As the manager of a 60-unit hotel you know that all units are occupied when you charge $80 a day per unit. Each occupied room costs $8 for service and maintenance a day. In addition there is a fixed cost of $400 a day. You have also observed that for..
Policymakers around the world often face what Obstfeld and Taylor dubbed a `policy trilemma': They want capital mobility for efficiency and edibility purposes;
Suppose that a government has an initial debt of $5 trillion and that the nominal interest rate is 5%.
An economy is faced by the exhaustion of an important natural resource at a time when it is introducing improved technology.using a diagram how these events will affect the economy production possibility curve.
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