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Suppose that the substitution effect of an increase in the wage rate exactly offsets the income effect as the hourly wage increases from $12 to $13. What would the supply of labor curve look like over this range of wages? Why?
Elucidate what financial impact each of those expenses has had on the companies margins
Show the first and second order condition for profit maximization. Illustrate what is the price elasticity of demand faced by this monopolist.
When developing short-run cost curves, it is assumed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses.
If a cartel like OPEC restricts the output of member nations to less than they are capable of producing with their existing levels of capital equipment, does the social cost of a monopoly increase? Explain.
Consider an air basin with only two consumer, Huck and Matilda. Suppose Huck's demand for air quality is given by q_h=1-p where p is Huck's marginal willingness to pay for air quality. Similarly, Matilda's demand is given by q_m=2-2p. Air quality ..
What is the equilibrium price and quantity. Illustrate what will sales be if the price is dropped to $20.
What types of inefficiencies and/or externalities arise in each renewable resource case that interferes with sustainable and efficient management results?
Illustrate what are the three major categories of expenditures for the federal government. Explain whether or not we should be concerned with net interest outlays and national debt.
Compute the PV of Mr. Deco's payment using the equivalent real cash flow and real discount rate.
Keep in mind that the oil price is not the same as the price level in macroeconomics diagrams, even though the changes in oil price indirectly affect the general price level (such as CPI and GDPD).drawing of macroeconomic model of AD-AS behavior
if companies in the automotive industry are considering a merger with another automotive company, what complexities would arise under this scenario of expansion of capital projects
Economic growth is a major issue in the current presidential election. The Romney campaign argues that tax cuts for investment is the best way to encourage economic growth. The Obama campaign says that government spending on infrastructure and edu..
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