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Question: During times of high demand for aglets, the demand curve (MRP curve) foraglet makers is given by P = 8 - Q. During low demand, the MRP curve is given by P = 6 - Q. Micropolis has a fixed number of aglet makers who inelastically supply labor, so the supply of aglet makers in Micropolis is given by Q = 3. Macropolis has a large number of workers who can easily retrain as aglet makers, so the supply of labor in Macropolis is given by P = 4. There is a 50% chance of high demand and a 50% chance of low demand. Compute the aglet factory's expected profitin Macropolis and Micropolis. In which city should the aglet factory locate?
Suppose that in 2009 the money supply was $100 billion and real GDP was $300 billion. In 2010, money supply increased by 10 percent and real GDP increased by 5 percent. Nominal GDP in 2010 was $660 billion. What was the price level in 2010? What was ..
What is Bertha's expected rate of return in each scenario and what is the relationship between businesses and households in the circular flow model?
The MacBurger Company, a chain of fast-food restaurants, expects to earn $200 million after taxes for the current year - Calculate the cost of equity capital to given firm
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Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand.
Assume that the following cash flows are associated with a project. Compute the rate of return for this project
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Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.
What is the fate of all orbits of F(x) = ax where 0 a 1 and What is the fate of orbits of this function for other values of a?
Write an equation in slope intercept form for Econoland's PPF and an equation in slope intercept form for Free Enterprise's PPF. What is Econoland's opportunity cost of producing one additional airplane? What is Free Enterprise's opportunity cost of ..
Outline the Harrod-Domar growth model. To what extent is it relevant to the analysis of contemporary capitalist economies?
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