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Suppose there are two goods available for consumption, good 1 and good 2, and the government has imposed rationing on the consumption of good 2, so that no more than x2 can be consumed by a given consumer.
Draw the budget set of a consumer who has income m.
Find a single price that all mutually preferred trades can occur. What are the gains from trade? Now suppose a $1.50 per-unit tax is levied on Larry for each unit sold (that raises MC by $1.50). Now find all mutually preferred trades and the trading ..
To make the case that one country has a comparative advantage over another country in the construction of a given good or service,
Suppose each government has a target level of output of 125 and that each government increases government spending by the same amount.
Explain whether transfer payments, such as Social Security and unemployment compensation, are counted as government spending in calculating GDP.
Consider the following two-firm Cournot game. Suppose market demand is given by the equation P=24-Q, where Q= qA+qB. Suppose each firm has only four options: 6,7,8, or 9 units of output. What is/are the nash equilibrium for this game? Does the domina..
If a firm is losses money, it might be enhanced to stay in business in the short run. Is this statement ever true.
Do wages clear when the wage equals two. Do we know whether the equilibrium wage is higher or lower than two.
Rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
What is the value of a preferred stock that pays a perpetual dividend of $100 at the end of each year when the interest rate is 6 percent?
Treasury bonds typically have lower coupon rates than corporate bonds because
A recording company obtains the following information about the demand and production costs of its new.
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. What is the average varia..
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