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During the period 1973-1975, the United States experienced a deep recession with a simultaneous sharp rise in the price level. Would you conclude that the recession was the result of a supply shock or a demand shock? Illustrate, using AD-AS analysis.
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $3, $3. Suppose you have $4 at 1% and can borrow at 12%. Which assets do buy?
Suppose that your firm is the only producer of a high-tech sports utility vehicle for North American markets. Assume a constant marginal cost of $25,000 to produce each vehicle and no fixed costs of production.
Discuss the organizational structure of your selected organization, then compare and contrast it with two different organizational structures.
Let us suppose that the consumer is choosing between beer and milk. The consumer will always prefer beer to milk. However, if the consumer has two choose between two consumption bundles having equal amounts of beer and different amounts of milk, then..
The global Propylene industry is perfectly competitive and each producer has the marginal cost function MC = 40-12q+q2 . The corresponding average cost function is AC=40-6q+1/3q2. The market demand curve for propylene is Q=2200-100P. What is the long..
Suppose two countries, Home and Foreign, produce two goods, timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two industries. Determine whether each statement is ..
Where would each of the items be included in M1, M2, or M3? Would any of the items not be included at all in these money supplies. Why? Items: clothes, real estate, bank CDs for $1000, $100 in cash, Credit card balance of $500 and a 1968 Ford Mustang..
Compare and contrast a public good versus a private good. What are the principal characteristics of each? What are the two key characteristics of public goods? Is there a free rider problem when it comes to public goods? Why?
Calculate the price elasticity of demand for Newton's Donuts
What are Southwest Airline's Political, Economical, Social, Technical, Legal, and Environmental Issues currently facing the company?
3. assume a monopolist who sells a product with a total cost function c -100q 15q2. the market demand is given by the
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
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