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The price of a new model of iPod tends to fall significantly a year after it is first introduced. Suppose Jane bought an iPod as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy a new battery charger. Which of the following should she consider before buying the new accessory? The price she paid for her iPod, the price of the battery charger, and the benefit she'll receive from using the battery charger. The price of replacing her iPod, the price of the battery charger, and the benefit she'll receive from using the battery charger. The price of the battery charger and the benefit she'll receive from using the battery charger. The price of the battery charger had she bought it with the iPod, the current price of the battery charger, and the benefit she'll receive from using the battery charger.
Suppose that an industry has high fixed costs to enter but, other than that, is competitive. What will be the effect of the high fixed costs to the number of firms in the industry? To the firm size ? Is marginal cost higher or lower for a firm with h..
Your first paragraph should discuss what the part of the model of the market gave you the biggest fits (but it cannot be "everything"). In this paragraph, include specifics about what it is that you don't understand as well as you would like. 2. In t..
Indicate whether the following shocks are real shocks or aggregate demand shocks.
Suppose that the price of the firm’s product is $20. What are the firm’s marginal and average revenue product functions? What is the firm’s short-run demand function for input Z.
Currently a government budget is balanced. The marginal propensity to consume is 0.75. The government has determined that each additional $10 billion in new government debt it issues to finance a budget deficit pushes up the market interest by 0.20 p..
State whether the following will result in a change in demand or a change in quantity demanded. Explain.
Statistics show that vacancy rates average 20 percent on any given night." Assuming his statistics are correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variety externalities.
Discuss the following statement: Whenever the output is below potential and the government has a fixed exchange rate policy, it can use monetary policy to stimulate the economy and bring it back to full potential.
Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural s..
Kim owns all 100 shares of common stock in GBZ Co. She has decided that she needs to raise $10,000 in new capital this year. She is trying to decide between two alternatives that are open to her. One is to issue a $10,000 bond, paying 10 percent inte..
Integrating Problem Samantha Roberts has a job as a pharmacist earning $ 30,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $ 40,000 per year or to purchase a pharmacy that generates a revenue of $..
Are there any general shapes of cost curve graphs and firm supply graphs? For instance, MC graphs usually are U-Shape graphs and usually start from below AC graphs. Or it all depends on the types of graphs? Is there a name for a graph that represent ..
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