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Assume that you are a medical doctor and that both you and David, your partner in a private medical practice, want to increase your firm's total revenue. You argue that in order to achieve this goal you should lower your consultation fees (price). David on the other hand thinks that you should raise your fees. What assumptions are each of you making about your firm's price elasticity of demand?
A president proposed a tax cut in the early 1960s. He said "It is a paradoxical truth that tax rates are too high today and tax revenues are too low, and the soundest way to raise tax revenues in the long run is to cut tax rates now." Can someone ..
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
The annual rate of growth of real GDP in a developing nation is 0.3%. Initially, the countries' population was stable from year-year. Recently, however, a significant increase in the nation's birth rate has raised the annual rate of population growth..
Given the price of gasoline to be three dollars a gallon. Now show graphically what happens if we put a one dollar tax on gasoline. Please tell me how much for the tax the consumer pays and how much of the tax the seller pays.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
Explicidate key macroeconomic variables which affect your industry.
There are two goods 1 and 2. Denote the consumption bundle consisting of x1 units of good 1 and x2 units of good 2.Write down the equation for the indierence curve that passes through the consumption bundle.
You are a financial adviser to a U.S. corporation that expects to receive a payment of 40 million Japanese yen in 180 days for goods exported to Japan.
The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a developing country, producing food and clothing at maximum capacity.
Elucidate the three Federal Reserve tools used to undertake a tight monetary policy.
Is the following statement correct or incorrect: "If a firm operating in a monopoly or imperfectly competitive industry is trying to maximize profits, it will always charge the highest price that the traffic will bear." Explain why or why not.
Index funds were also first offered during the 1980s. These funds allowed investors to become cheaply diversified from idiosyncratic risks faced by individual companies while still allowing them to capture the returns from the broad stock market.
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