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Suppose John deposits 20 million into his checking account, if the reserve requirement ratio is .1, what is the maximum change in the money supply?
Consider the following market game: An incumbent firm, called firm 3, is already in an industry. Two potential entrants, called firms 1 and 2, can each enter the industry by paying the entry cost of 10. First, firm 1 decides whether to enter or not. ..
Suppose a firm hires labor in a competitive labor market and sells its output in a competitive product market. The firm's elasticity of demand for labor is -0.4. If the wage increases by 20 percent, what will happen to the number of workers hir..
What is "segmentation by purpose of travel"? How can it help in the analysis of tourism? What is "psychographic" segmentation? How does it help in the analysis of tourism?
Consider a monopolist facing two customer groups. The first has demand p1 = 10 ! q1/2 and the second has demand p2 = 20 ! q2. The firm has marginal cost MC(q) = q, where q = q1 + q2 is the total amount sold. Suppose it can separate customers into the..
Discuss on how during a period of financial crisis when funds cannot be raised easily or quickly, the fundamental values of some assets can depart from market prices. Explain how this relates to the distinction between loans and securities. Identify ..
Explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infrastructure and helping to create jobs. Do you agree or disagree?
Suppose the demand for a product is such that the SE of a price change is equal to zero.
Suppose a firm is making its location decision and acting in the same manner as firms in the Weber Model. The firm takes three inputs and produces a single output. This output costs $5/unit to transport.
How should such a decision whether to install CCTV in such nonpublic areas be made? Who should make the final decision?
Zust preferred stock is selling for ?$40.48 per share and pays ?$1.85 in dividends. What is your expected rate of return if you purchase the security.
The producer in the perfectly competitive market above will pick a level of production such that:
In your view what are the major costs of inflation? What is the relationship between deflation and liquidity trap?
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