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Suppose you have been hired as an economic consultant to increase your client's sales revenue, and you discover that your client's customers are price inelastic. What suggestions do you have for your client in regard to using changes in your client's price to achieve this objective?
Analyze the contribution that automatic stabilizers play in making a stable economy. Provide some examples of the automatic stabilizers and use them to illustrate their significance.
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
Sales for year just ended were $500, and fixed assets were used at 80% of capacity. Current assets and accounts payable vary directly with sales.
Discuss the conditions that characterize pure competition (a price taker market) and explain how and why price takers maximize profits at the quantity for which marginal cost, price, and marginal revenue are equal.
Elucidate whether you would draw an aggregate demand or aggregate supply diagram and predict what shift each situation would cause.
Explain how many hours of labor should XYZ hire each day to maximize its profits.
When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year REAL GDP (2000 prices) population 1987 $6,435,000 million..
Describe how globalization impacts the capital budgeting decisions of multinational firms? Be sure to carefully explain your reasoning.
Expalin how the actions of a mine operator can spend $5 million to free a trapped miner.
Find the firm's optimal quantity, price, and profit (1) by using the profit and marginal profit equations and (2) by setting MR equal to MC. Also provide a graph of MR and MC. b) Suppose instead that the firm can sell any and all of its output at ..
What factors led to the mortgage default crisis How did mortgage defaults affect banks involved in mortgage lending and mortgage investing Securitization TARP What do these mean
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