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What is the hypothesized elasticity of demand for one product/service that is produced by the company (or a product/company you are familiar with)? Given this hypothesized elasticity of demand, how should the company price their product in this market if the goal is to increase total revenues? Give justification for your answer.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
The average weekly earnings of bus drivers in a city are $950 with a standard deviation of $45. Assume that we select a random sample of 81 bus drivers.
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
Essay on Market imperfection associated with negative externalities
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