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Imagine the economy is slipping into a recession. What would a Keynesian advocate and why? Compare this approach to adjusting the discount rate to affect the money supply.
Two Cournot competitiors, Nick Limited(firm 1) and Junior LLC(firm 2), face an inverse demand curve p = 400 - 2q in the market (q = q1 + q2). Both producers have a marginal cost of $10 per unit. What is the reaction function for Nick Limited? How man..
Suppose the federal funds rate is 4.4 percent and you know that the Fed is following the Taylor rule. You don't know the Fed's inflation target, but the equilibrium real interest rate is 4 percent, the inflation rate is 3 percent, the weight on the G..
In 1796, Gottfried Christoph Härtel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated cost functions to make production decisions. Graph the total cost, average total cost, av..
A firm uses third-degree price discrimination to sell the same cologne under two different labels. The price elasticity of demand for `High Class' is -1.25. The price elasticity of demand for `Splash-This-Stuff-On' is -2. Which one of the following s..
Which of the following would shift the aggregate demand curve to the left? The short-run aggregate supply curve is positively sloped because: The aggregate expenditure curve is represented by a line that is: Whenever GDP exceeds planned aggregate spe..
Suppose the economy produces only two goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the ec..
Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers, and the ..
What might you expect in the way of cultural differences from a business point of view if you were to go to France, Saudi Arabia, Brazil or China? What do you think people from France, Saudi Arabia, Brazil or China might expect from American culture.
Preparing to Conduct Business Research
Calculate and interpret the own price, cross price, and income elasticity of demand.
It can buy a drone from Skycatch for $1000. It is not grapes cultivation specific drone, but it can be adapted for the winery's purpose. It can also detect how much water each grapevine plant needs at a given time.
Decreasing returns to scale imply that. When average cost is falling, marginal cost is ____________ and when average cost is rising, marginal cost is _________________. If the price of an input changes, there will be a new expansion path. As long a..
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