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In California, a welfare recipient can earn $225 without having benefits reduced. Beyond $225, benefits are reduced $.50 for every dollar of earnings. Consider Elizabeth, a resident of California, who can earn $10 per hour. If she does not work at all, she is eligible for welfare benefits of $645. After she works a certain number of hours, she does not receive any benefits at all. What is that number of hours?
The production function is given by f(x)=4x^1/2. If the price of a commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profit?
The investors in exercise 2 are surprised by firm's performance in year 5. Instead of being $20 million, the firm's profits are $40 million. What happens to firm B's stock price in year 6 and 7?
Select 3 basic strategies that a multinational corporation might use from the following list of strategies: vertical and horizontal integration, outsourcing, merger and acquisition, limit pricing, product differentiation, price discrimination and tra..
Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service. ..
Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium. a. How do you know that the industry is in long run equilibrium? b. Suppose that there is an increase in demand for this product. Show and explain the short-run ad..
Which of the following models are not generally the best to use when generating short-term forecasts?
If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports - what is the country's GDP for the year?
Grandparents decided to start a college fund for their soon to be born granddaughter. They plan to make third first deposit the day she is born and plan to make the last deposit on her 10th birthday. They want the child to be able to withdraw 10,000 ..
If this were the case would there be any automatic stabilizers in the government economy. Would there be any distinction between the full-employment deficit also actual budget deficits.
In the early part of the 21st century the high protein Atkins diet became quite popular in the US. Explain what the popularity of this diet would do for demand for a high protein food like meat and for the marginal utility of meat at former levels of..
Suppose Jane has a one third chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability in..
Let P be the price of a stock. The investor wants to purchase Q units of this stock. Suppose investor’s equity is E and assume that equity is strictly smaller than the value of the stock investor wants to purchase. As such, the investor receives a lo..
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