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Farmers have long recognized that " bumper crops" are not always a great thing in terms of their revenues.
a. In terms of the elasticity of demand, why would this be so?
b. Would it eve be in the interests of a single farmer to reduce his output in an effort to raise price?
c. in point form, list three problems farmers would face if they tried as a group to restrict output?
Suppose that autonomous consumption increases but that, unlike the situation in the simple Keynesian model of this chapter, some of this autonomous consumption increase is spent on imports (say an amount equal to MPM times the autonomous consumption ..
david consumes 2 things gasoline g and bread b. davids utility function is ugb 10g0.25b0.75.a. use the lagrange
What are the main concepts that we study in macroeconomics.
ireland and spain have been experiencing deep economic crises. the crises were the results of the preceding booms with
Which of the following is a traditional tool used by the Fed during recessions? Which of the following institutions determines the quantity of money in the economy as its most important task?
What is the equilibrium output of such knives. Illustrate what is the equilibrium output of such knives.
In the movement to downsize government, advocates often recommend turning over some government services to private firms hired by the government. What are the potential benefits and costs of such outsourcing
Consider two firms who each release 10 units of pollution initially, for a total of 20 units. Their supply curves for abatement are given below. These supply curves measure the marginal cost of abatement, or the cost of cleaning up each unit of po..
The mass of Mars is 656-01-03-00-00-v2_files/i0050000.jpg kg, and the mass of a single proton is 656-01-03-00-00-v2_files/i0050001.jpg kg. Assuming Mars is made entirely of protons, how many protons would make up Mars?
1. In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to
If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?
A worker is able to select her weekly hours. When a new bridge opens up, it will cut 1hr from the daily commute to work. If both leisure and income are normal goods, what is the effect of the shorter commute on this persons work time.
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