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Suppose the recent recession led to a drop in wages such that the price of labor fell by 25 percent.Economists predict that this drop will be sustained in the long run. Furthermore, the user cost ofcapital has not changed, nor is it predicted to. How does this change in relative prices affect afirm’s long run expansion path? Please explain using both words (i.e., economic intuition) and agraph.
Pick one market in which the price system does not produce an equitable price and quantity of output. Write a paper of 250 words minimum discussion with at least (2) sources cited in the MLA format. What are the alternatives to government interventio..
Suppose the demand and supply curves for a large cheese pizza are given by: Using the demand and supply functions above, the equilibrium price of a pizza is ____, and the equilibrium quantity is ____.
Two division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. His bonus is based on total sales and he wants a larger bonus for himself and his mana..
Suppose which equilibrium income is 3200 also the multiplier is 2.38. Equilibrium income would rise to 3400 if planned investment.
Evaluate the institutionalist economists. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.
q.suppose the market demand for apples is given by qd 1600-100p and there are two firms operating in it each with a
competitive equilibrium, monopolists profit maximizing price and level of output, why are monopolies illegal from an economic point of view
The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure. Explain why M2 velocity should be more predictable ..
explain how and why a monopolist would try to price-discriminate: Providing air travel for business people and tourists; A fast-food restaurant that serves business people and retired people
In an effort to increase output the government could try to increase the employment, or try to raise capital stock or improve technology. If the government chose to lower taxes in an effort to increase the labor supply, how could this get in the way ..
A Wartburg engineering student has been out of school and working for a few years when they decide to buy a house that costs $233,000. They intend to pay a down payment of 20% and finance the rest at 5.75% per year compounded monthly on a 30-year mor..
Online Cosmetics: Australian cosmetics maker, Eternal Beauty Products, pressures online retailers to either sell goods at prices charged by brick and mortar stores or risk being cutoff. If online retailers are paying the same wholesale prices, why wo..
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