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Explain why the competitive markets does not always operate efficiently and if the regulatory authority of a natural monopolist sets price equal to marginal cost what problem would arise.
Suppose that the residents of Veggieland spend all of their income on cauliflower, broccoli, and carrots. then calculate the CPI in both years.
Discuss how your answer relates to the income and substitution effects of a price change from Knoxville food prices to Berkeley food prices.
Economic growth has increased in the past few months in the United States and driven by a surging stock market and increased confidence in the global economy, Canadians have increased optimism about the future of economic growth.
Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear street in front of Thelmas house without clearing the front of Louises.
Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard.
Consider the following utility function: U(X,Y) = max(X, 3Y) (a) draw the indifferent curve for this utility function. (b) find the Marshalian funtions for X and Y and the corresponding indirect utility function.
1. why do virtually all societies create something to function as money?2. how did the combination of increased holding
Suppose output is below potential output in year 0. Prices that year are given by P0. In year 1 (with the level of potential output unchanged) the Fed stimulates the economy by shifting the aggregate demand curve until it interest the point (P0, Y*) ..
It cannot be as the inflation by definition real wages have factored inflation in.
In the late 1990s a growing number of economists argued that world policymakers were focusing too much on fighting inflation. The economists also argued that the technical level of potential output had risen
Elucidate what are the impacts of innovation and technology on the cost of production. What are the effects of technology on the various market structures.
Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:
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