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The average 15-year old purchases 12 CDs and 15 cheese pizzas in a typical year. If cheese pizzas are inferior goods, would the average 15-year old be indifferent between receiving a $30 gift certificate at a local music store and $30 in cash? Explain.
What are the profit-maximizing price and quantity? What will be the profits at these price and output levels?
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Find the equation of the new demand curve for Chevrolets. Plot the new demand curve, D1 c' and, on the same graph, plot the curve for Chevrolets, D c'. found in 2 (d).
Evaluate price elasticity of demand
Examine the factors that determine the price of computers in a free market.
What key economic concepts underlie the employ of discount coupons by businesses?
The problem in economics in price theory deals with deriving maximum marginal utility and marginal rate of substitution.
Constrained optimisation model
For each of the following transactions, identify whether or not it would be included in GDP: What is Metrica's GNP? Is it higher or lower than its GDP?
What impact would this have on the Kitty Litter market and the individual Kitty Litter producer in the SR? In the LR? Carefully Explain.
Perform a White test for heteroskedasticity using auxiliary regression
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