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In calculating the GDP, why aren't stock market investments included? a. Stock prices fluctuate daily and a true value is hard to determine. b. Owning stocks does not contribute to our country's well being. c. The investment could actually turn into a loss. d. Only investment in newly produced goods is included.
Elucidate how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves.
During the first 13 weeks of the t.v season the Saturday evening 8;00pm-9:00pm audience proportions were recorded as ABC 29% CBS 28% NBC 25% and independents 18%. a sample of 300 homes two weeks after Saturday night schedule revision yielded the foll..
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce wid-gets. Each firm has a constant marginal and average cost of producing the good that equals 10. What is the Cournot-Nash equilibrium? You need to solve t..
The Bellini Center has scheduled two operas this season: Mozart's Cosi Fan Tutte, and Wagner's Tristan und Isolde. It has estimated that there are four types of customers who regularly attend the center (there is an equal number of individuals of eac..
Two firms constitute the entire doghouse industry. One has the long-run cost function c1(y) = 3 + (4y^2)/3 for y > 0 and c1(0) = 0, and the other has the long-run cost function c2(y) = 10 + (y^2)/10 for y > 0 and c2(0) = 0. If no new firms can enter ..
describe several different fixed costs and variable costs associated with operating an automobile.
Consider two countries, one is richer and one is poorer. Show that it is possible that the poor country will grow at a slower growth rate than the rich country. ( Hint, consider different steady state)?
Suppose a country makes commodity A and B with capital and labour with constant returns to scale technology. When the country goes from autarky equilibrium to trade equilibrium with its trading partner, the price of A rises and price of B remains sam..
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits
Per the Kyoto Protocol, European countries have targeted a reduction of CO2 emissions. There are two main types of coal-fire plants in the EU: one type is designed to be able to be retrofitted with abatement equipment at a lower cost than the other t..
Victor Finick likes to have the same amount of x as he has of y. His utility function is U(x, y) = min{2x - y, 2y - x}. a. Draw the indifference curve for Victor that passes through the bundle (0, 0) and the indifference curve that passes through (4,..
How much do you have to pay for a bond rate that pays 6% dividend compounded semiannually, with a face value of $5,000 that is going to be paid (maturity) in 5 years? The buyer wants to have an interest rate profit of 8% compounded semiannually.
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