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A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. Briefly explain the short-run adjustments for the market and the firm to a decrease in consumer incomes. What happens to output levels, prices, profits, and the number of firms?
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..
Using the principles of supply and demand, develop a plan to alleviate the shortage of math and science teachers within this country. Try to use price and non-price determinants as your tools to reach equilibrium. Defend your position using economic ..
Explain when a researcher is trying to estimate the causal effect of X on Y, and finds that the R^2 of her bivariate regression model is around 0.04.
Elucidate his production potential. In one person economy could this also be his budget line.
Suppose the employees of Starbucks in China are paid 8 yuan per hour and a cup of coffee is priced at 8 yuan. If Starbucks is maximising its profit, What is the value of marginal product of labour (VMPL) per hour of the last worker employed by Starbu..
Suppose a private closed economy has an MPC of .8 and a current equilibrium GDP of $7400 billion. What is the multiplier in this economy? Now suppose the economy opens up trade with the rest of the world and experiences net exports of $20 billion. Wh..
A huge increase in resource costs causes the price to rise to $9 also Block's only manages to sell 460 bottles of perfume.
Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.
Given the potential for demographic fault lines in negotiating these changes, what would you advise as a strategy for managing diversity issues for program leaders?
If investors dislike of risk grows more intense while the risk-free interest rate is constant, will average expected rates of return rise or fall?
In a paper, analyze the impact of changes in the federal minimum wage on employment, the individual, family and household incomes, and the future of employment wages. Provide specific examples to support your findings and justify your ideas.Analyze t..
Describe how the substitution effect and the income effect influence the slope of an individual's supply curve of labor.
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