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During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. Use a demand-and-supply graph to analyze the effects of these factors on the equilibrium price and quantity of LCD televisions. Clearly show on your graph the old equilibrium price and quantity and the new equilibrium price and quantity. What would a price ceiling set below the resulting equilibrium cause in the market? Explain.
You are considering buying a new house, and have found that a $200,000, 30-year fixed-rate mortgage is available with an interest rate of 4 percent. This mortgage requires 360
The price elasticity of demand for Pete's chocolate chip cookies is 1.5. Pete wants to increase his total revenue. Would you recommend that Pete raise his cost or lower his
what is the expected NPV for this new machine over ten years? what is the probability of a positive NPV?
Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms products as perfect substitutes. The ma
ACME Corporation constructed a small office building for their firm 5 years ago. They financed it with a bank loan for $450,000 over 15 years at 6% interest with quarterly pay
Economist Steven Landsburg (New York Times, January 16, 2008 p. A23) made the point that “bullying and protectionism have a lot in common. They both use force (either directly
Which of the following might describe the behavior of a firm's cost in the short run? If the MPL rises over a particular range of output, then over that range ____. Whenever t
China’s real GDP was 7,394 billion yuan in 2005 and 8,000 billion yuan in 2006. China’s population growth rate in 2006 was 0.5 percent. Calculate China’s economic growth rate
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