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A small Indiana town has one resident who uses and enjoys the local bowling alley. The marginal benefit of bowling for that resident is given by MB=50-6Q. The manager at the bowling alley has set the price of a game at $20. What is the total benefit for the resident?
Break out the components of the $28 marginal revenue from the seventh unit sale at $38.31-that is, how much revenue is lost per unit sale relative to the price that would move six shirts per color per day?
GDP also consumption both rose by $8 billion in the second round, Illustrate what would have been the size of the multiplier.
If the market price stays the same, but the fixed costs of the firm increase so that the total cost function becomes: TC = 18 + 17 Q - 4 Q2 + Q3 What will be the profit-maximizing level of output? Will the firm earn a profit, and if so, how much?
How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (The two investments have the same Expected Profit) What is the Risk Premium in the second choices?
Explain four problems with the argument that trade protection is needed to protect American jobs. b) Describe the economic reasons why businesses use off shoring.
Calculate nominal GDP in 2006 and in 2007 and the percentage increase in nominal GDP between 2006 and 2007.
What appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy?
Dr. Dolittle decides to sell his current home and move to a larger home. He estimates that he can sell his current home for $100,000 and can buy a larger home for $175,000. He plans to use the entire $100,000 sale proceeds as a down payment on the ne..
Assume that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by.
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country.
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Why do some companies spend a lot of money for advertising? What does it say about a the market structure the company is in when they advertise a lot or a little?
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