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1. When an investment is sunk and durable, why is it a mistake to assess the investment only on the basis of economic profits in the first year? What is a better criterion? Why?
2. Explain why under perfect competition in the long run the PR statistic should equal 1.
q.desired consumption is 100 0.8y - 500r - 0.5g and desired investment is 100 - 500r. real money demand is p y -
To introduce GNP and GDP, and other concepts of the National Income accounts, and to show how they help us understand the growth of the U.S. economy over the past century.
Suppose Philip Morris and R.J. Reynolds can write an enforceable contract about illustrate what y will do. Illustrate what is cooperative solution to this game.
One stay-at-home mom laments, “Lots of career women think the only reason I’m staying home is that I’m not capable of doing anything else.” Evaluate this criticism. In other words, is it true that the only reason women don’t enter the labor force is ..
Using the mid-point method, calculate the price elasticity of demand from Point A to Point B. Show the steps of your calculation. Suppose John operates his sandwich stand at the portion of the demand curve between Points A and B. If John would like t..
You are an economic analyst and one of your clients is your Aunt Ginger. You have not met with her for a year, and she has just closed the books on her first year in business. Her accountant has informed her that she made a substantial profit, and sh..
Differentiated goods are NOT a feature of a:
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the book keeping tasks are done man..
Using short-run cost theory, explain the impact of this additional patient on the SAVC and SATC. Do they increase or decrease.
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? $ billion.
You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The revenue maximizing output is
Assume that the economy's real GDP is growing. what will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over tiem? If the Fed changes the money supply to match the change in money..
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