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Explain the relationship between the wage rate and the marginal factor cost in a monopsony market. Is the wage rate equal to the marginal factor cost? Is so, explain why this is the case. If not, explain why not.
Suppose that a country's imports are given IM=20+.1Y, and their consumption is given by C=100+.8Y. If the government increases government spending by 300, by how much will output and imports change?
Does the law of diminishing marginal utility hold true in everysituation? Is it possible to think of goods for which consumingadditional units will result in increasing marginal utility?
Explain the various terms in the AS curve. Elucidate why the price of oil enters negatively. Solve for the equilibrium value of real GDP and the price level.
What happens to the quantity of net exports? NX INCREASES. What happens to the value of dollars in the market for foreign currency exchange?
The owner of Ryan's Car Wash believes that the relationship between the number of cars washed and labor is Q = - 0.6 + 4L - 0.8 L2, where Q is the number of cars washed.How many people should be employed to maximize profit.
Explain the target market including geographical location, shopping habits, and the different types of circumstances in which the product will be used.
Illustrate the following situations using supply and demand curves for money. No graph needed only state what will happen to the supply and/ or demand curves for money and what will happen to the equilibrium interest rate.
In meeting the high demand with limited resources consumers have to practice the opportunity cost. What do you understand by the term opportunity cost?
When there is deflation, as in inflation of -1%, the real interest rate that Herb pays (as compared to what he expected to pay): increases, so Herb feels poorer decreases, so Herb feels richer increases, so Herb feels richer decreases, so Herb fee..
A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use a discount rate of 6%.
In 2007, the potato chip industry in the Northwest was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure.
Explain why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
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