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“In a price-taker market, if a business operator produces efficiently-that is, if the cost of producing the good is minimized-the operator will be able to make at least a normal profit.” True or false? Explain.
Is the real interest rate on this loan higher or lower than expected? Does the lender gain or lose from this unexpectedly high inflation? Does the borrower gain or lose from this unexpectedly high inflation?
Briefly explain the calculation of The Unemployment Rate for the U.S. economy. How is the data collected to compute the Unemployment rate?What is the ultimate cause of severe inflation in an economy?
How foreign direct investment influences the wages
As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of so..
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes in one factory. However, it is considering expanding production to two or even three factories.
Formerly, market for air travel in Europe was highly regulated. Entry of new airlines was severely restricted, and air fares were set by regulation.
Describe some healthcare situations in which an agent has taken advantage of a principal. Now describe some healthcare transactions that have not taken place because of fears about asymmetric information. What are some strategies for reducing adve..
The accompanying graph (top of next page) summarizes the demand and costs for a firm that operates in a perfectly competitive market.
Estimate the cash flow to be included in the horizon year and what will be the horizon value if there is no profit growth?
With an aid of diagram (consist of both demand & supply curves) show & explain what happens to the equilibrium price & quantity when:1. the preference for pepsi suddenly increases 2. the price of milk has increased which increased the cost of ice cre..
A firm uses two inputs into production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the firm's average total cost curve, the average va..
Discuss the current monopoly to provide a brief overview of the company. How did the monopoly arise Did the monopoly increase barriers to entry Does the company behave like a monopoly or more like a competitive firm
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