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What assumptions are necessary for a market to be perfectly competitive? In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true? Why do firms enter an industry when they know that in the long run economic profit will be zero?
Using the information on exhibit 2 calculate the consumer price index in the current year.
Visit the Fed's Summary of Commentary on Current Economic Conditions, also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.
Elucidate how much in revenues do businesses receive in the product marketplace.
Bulls Eye department store specializes in the sales of discounted clothing, shoes, household items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearest other discount retail..
What is average variable cost? Is the firm profitable? Should it stay in business? Should it stay in business in the short run? Should it stay in business in the long run? Show your work and explain answer.
Assume that the central bank of an economy contracts the money supply.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them also staff them with employees.
Each bundle that the consumer chooses, draw the indifference curve that goes through that bundle.
q. a show how to own equilibrium in a robinson crusoe model.b what is the relationship between the marginal rate of
What is the point forecast of sales in the next time period? What is the 95% forecast interval for the next period’s sales figure? (use z = 1.96)
A firm in a perfectly competitive market invents a new method of production which lowers its marginal costs. Illustrate what happens to its output.
1. is the industry or industries in which the firm operates conducive to abnormally high rates of return?2. does the
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