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Find the value of Q where increasing returns ceases and diminishing returns begins. Hint: Diminishing returns begins at the level of Q where MC is a minimum. STC = 260 + 25Q - 3.6Q^2 + 0.3Q^3
Inflation has traditionally been a concern of the Federal Reserve. Recently, there has been the possibility of deflation. Should the Fed be concerned with deflation of prices? What about targeting 'nominal GDP'? Can deflation occur without recession?..
The U.S. economy is currently in the expansion phase. An expansion is a period in which the economy experiences two or more consecutive quarters of positive
Show graphically how the effects of an increase in supply will differ according to the elasticities of supply and demand.
What is the present value of the following series of prospective payments?
Use the Law of Demand to explain why all consumers must receive a surplus whenever they purchase more than one unit of a product
Consider a competitive industry with many identical firms. The supply curve of an individual firm is given by S1(p) = 2p when p ≥ $2 and S1(p) = 0 when p
Given that the net gain to society of the innovation is positive, why might a government still want to suppress the innovation?
One of the key issues facing operations managers involves vertical integration versus outsourcing. What are they and what are the tradeoffs involved in each?
Suppose that a certain country has an MPC of 0.9 and a real GDP of $500 billion. If its investment spending decreases by $12 billion, what will be its new level of real GDP?
A mononopoly faces a market evenly split between high valuation consumers, with demand P = 4 - 0.5y, and low valuation consumers with demand P = 3 - 0.75y. Suppose the firm has MC = 0. Suppose the firm is free to use two-part tariffs as a pricing sch..
Discuss how discrimination affects efficiency within organisations, with special emphasis on LGBT issues. Also discuss why we might observe discrimination, given the efficiency implications highlighted in the literature.
Calculate price elasticity at point S using the method E=ΔQΔP×PQ. Calculate price elasticity at point S using the method E=PP−A. Compare the elasticities in parts a and b. Are they equal? Should they be equal?
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