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What is investment? Why does investment decrease when the real interest rate increases? What role do expectations play in investment?
The kinked-demand schedule that an oligopolist believes confronts the firm is given in the table below. Compute the oligopolist's total revenue at each of the nine prices, and enter these figures in the table. Compute marginal revenue for each uni..
what are the optimal markups for widgets and gadgets Marginal revenue = Price(1 + 1/Price elasticity) since price is positive (always) so we can ignore that part when determining the sign of MR MR is negative if 1+1/elasticity is negative and positiv..
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown at the top left of the next page. a. Use the data above to graph the aggregate demand and aggregate supply curves. What is the equilibrium pri..
In the second quarter of 2006, household income was $13,134 billion, consumption was $9,162 billion, investment was $3,340 billion, and net exports were -$777 billion. What was the level of government spending in the second quarter of 2006
a product comes with a 3-year warranty. repair costs are expected to average 3500 per year beginning in year 4. the
Does this international agency address a future international public goods or externality problem?
Which alternative would you choose and why? What additional information would help you make the best decision?
American Linen is a firm that has multiple salespersons. In 2008, it changed the compensation method for its sales force, moving from a system of fixed wages to one of base wage plus commission. As a result, American Linen's total revenue from sal..
Your company has used the basic COCOMO model in the semidetached mode with an EAF (error adjustment factor) of 1.75 to estimate software for your line of data acquisition systems. You suspect there is a better PCE and want to develop a more accura..
QD = 140,000- 25,000P QS = 20,000 + 75,000P, where Q = daily sales in 6 packs of beer, and P = price per 6 pack. The city has hired you to provide the following information regarding the beer market and the proposed tax.
Suppose we have two products in the market, orange and potato, the demand function and supply function for orange: Qd1 = 10 - 2P1 + P2 Qs1 = -2 + 3P1 the demand function and supply function for potato: Qd2 = 15 + P1 - P2 Qs2 = -1 + 2P2
An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs.
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