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Governments of country A and country B spend the same amounteach year. Spending on functions relating to dealing with marketexternalities and public goods accounts for 25 percent ofgovernment expenditures in country A but makes up 75 percent ofgovernment expenditures in country B. Funding to provide meritgoods and efforts, to restrict the production of demerit goodsaccount for 75 percent of government expenditures in country A butonly 25 percent of government expenditures in country B. Which country`s government is more heavily involved in the economy through economic functions of government as opposed to politicalfunctions?
Suppose the domestic appliances industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist.
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
Explain in your own words what happened with these companies which caused an international financial crisis. Identify at least one management goal for Fannie Mae and Freddie Mac.
In 1971, Congress conducted headings on emergency loan guarantee legislation for Lockheed Corporation, which was in the middle of a severe liquidity crisis due to losses on a number of military contracts.
Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4. Find out the optimal values of both goods (Y*,X*) and Utility?
True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money a..
At a product price of $56, will this company produce in the short run explain why or why not? If it is preferable to produce, what will be the profit-maximizing or loss minimizing output
Consider economy that is above full-employment equilibrium (natural rate of output) because of an increase in AD. Prices of productive resources have'nt changed. With the help of graph
Assume that, from an initial consumer equilibrium position, price of good X falls while the price of good Y remains the same.
Consider a nation with an economic structure consistent with assumption of classical model. Assume that businesses in this country suddenly anticipate higher future profitability from investments they undertake today.
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve
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