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Optimal Markup
if elasticity is -2,price is $10, and marginal cost is $8, should you raise or lower price?
Explain how the distinction between expected and unexpected inflation is important to the distributional effects of inflation.
Illustrate price as well as quantity will maximize revenue. Elucidate the total revenue and price elasticity at this point.
Calculate the equilibrium real wage rate and the equilibrium quantity of labor. Suppose that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0. Compute the real wage rate.
Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
How does an active fiscal policy helps or hinder long-run growth in the economy.
Discuss the short-run movement toward equilibrium in the currency markets in a flexible exchange system.
Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
Elucidate the roles of government bodies which determine national fiscal policies.
Suppose the domestic appliances industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist.
Explain why this strategy may in fact, be rational Also, identify at least two other strategies that might permit Argyle to earn higher profits.
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