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Suppose that advances in genetically modified crop technology enable farmers to produce greater amounts of agricultural products on the same amount of land. Explain how this event would affect demand, supply, price, quantity demanded, and quantity supplied in the global market.
Are the Internet business models B2C and B2B useful or do these models oversimplify complex business relationships?
De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination. U..
Consider a competitive industry in which each firm has the same production technology given by the production function q = K1/3L2/3, where K and L are two inputs and q is the amount of output. The unit price of K is $0.50 and the unit price of L is $..
What Marx called "underconsumption" is very similar to Keyne's concept of
The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate_____ banks' incentives to borrow reserves f..
What is brand loyalty? Name three products each for which you have (a) high brand loyalty and (b) low brand loyalty and explain why for each of the six products.
Proposals to reduce patent length for drugs are sometimes made, but some critics argue that such a change would result in even higher prices during the patent period as companies would need to recover drug development costs more quickly.
Consider a consumer that only purchases two goods to maximize his/her satisfaction. He/she originally maximized his/her satisfaction, and suddenly his/her income decreased. Assume that good 1 is inferior and good 2 is normal. What are the implication..
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. The Federal Reserve buys a government bond worth $750,000 from Shen, a client of First Main Street Bank. H..
What is "crowding-in" effect? Explain the factors which determine the strength of the crowding in effect. What is "crowding out"? Why is it important in discussions of fiscal policy?
Suppose a second firm enters the market, producing the same product. The total quantity supplied in the market is now the sum of the two producers, a Cournot Duopoly. Determine the equations for each firm’s Total Revenue, TR and for each firm’s Margi..
What were the strengths and weaknesses of the system of central planning in the Soviet Union? Was the decline of socialism in Eastern Europe the result of purely economic facture? What role was played y politics and culture?
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