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One of your classmates, Sally, is a hardworking student, serious about her classes, and conscientious about her grades. Sally is also involved, however, in volunteer activities and an extracurricular sport. Is Sally displaying rational behavior? Based on what you read in this chapter, construct an argument supporting the conclusion that she is.
Decreasing or constant returns to scale
How do you know that cutting the price of Roundup was a good idea for Monsanto - how might you estimate the elasticity of demand and the profit-maximizing price for 1995. Do you think Monsanto set the right price?
two firms produce differentiated products and set prices to maximize their individual profits. demand functions for the
You need both equations and clearly labeled graphs. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the nat..
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The goal of all capitalists is to dismiss the competition and gain market power. a) Explain why that might be hurtful for the economy, though not for everybody, clearly stating who wins and who loses in the presence of monopolies.
Find Marens consumption in the two periods ( as a function of m1,m2 and r)3) If the interest rises, how will Maren chanhe her consumption in each of the two periodes
What are two ways for a competitive firm to determine the optimal level of production, that is, the level of production that will maximize profit or minimize losses?
Ann owns a lawn mowing company. She has 240 lawns she needs to cut each week. Her weekly revenue from these 240 lawns is $8,400. If given an 18-inch deck push mower, a laborer can cut each lawn in two hours. If given a 60-inch deck riding mower, a la..
The net cash flows from an investment project are -$30,000 in the first year, -$20,000 in the second year, -$6,000 in the third year, $1,500 in the fourth year, $5,000 in the fifth year, $15,500 in the sixth year, and $66,000 in the 7th year. Calcula..
Cement is competitively produced domestically with MC = Q/3 -20. Domestic demand for cement is P = 100 - Q/3. The world price for cement is $50.a. Find and graph the free trade equilibrium in this market
what happens to the indifference curves when a households income is reduced?questionwhat is a budget constraint? how
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