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In any city at any time, some of the stock of usable office space is vacant. This vacant office space is unemployed capital. How would you explain this phenomenon? Is it a social problem?
Which of the following does not describe the circular flow model between the householdand the firm? John works at a coffee shop and makes $10 per hour. He decides to leave work an hour early to go see a movie that costs $8 per ticket. The opportuni..
Does Budweiser have a dominant strategy and what is the equilibrium for this advertising strategy game? That is, in which cell will the firms end up?
There is an inherent tendency in industry to substitute labor with fixed capital and employers can compel workers to produce more than the value of their labor.
Identify the stocking rate that you would suggest to a risk averse farmer and explain why you would recommend this stocking rate.
What is the underground economy? What is the impact on the underground economy of instituting a tax on a certain productive activity?
If Apple reduced its price for the shuffle, what do you think would happen to their profit? What impact would the price decrease have on their competitors? Explain by considering the elasticity of shuffles).
Describe how a firm's microenvironment can determine how profitable it will be? Provide examples of organizations as well as aspects of their microenvironment which have hindered or benefitted growth.
Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option?
An economy is initially in long-run equilibrium. The introduction of an electronic payments system dramatically reduces the demand for money in the economy. a. What is the short-run impact on prices and output of the new system
A museum increases its admission price by 10 percent. As a result, total revenues increase by 10 percent. the price elasticity of demand for admission is?
(a) If two firms face the same wage and rental price of capital but spend different amounts on labor and capital, how do their isocost lines differ What happens to their isocost lines if the wage rate increases
What are the two firms' best response functions? Show you calculations and what will be the market price, the market output, the output of each firm and the firms' profits?
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