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When General Motors devotes $1 billion to new investment (e.g., building new factories, warehouses, offices), who does the saving that is required? Stockholders? Workers? The public? Buyers of cars?
Calculate the price elasticity of demand at the monopolist's profit-maximizingprice. Also calculate the marginal cost at the monopolist's profit-maximizingoutput. Verify that the IEPR holds.
Do you think this model provides a plausible mechanism for generating large income differences across countries? Substantiate your answer with theoretical or empirical arguments.
She estimates that the total cost of operating the office is approximately $48,000 per year. The potential revenue is estimated as $100,000 per year. Compute accounting cost, accounting profit, conomic cost, and economic profit.
Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system. All figures are in billions. The reserve ratio is 25 percent. A. What amount of excess reserves does the commercial banking system have.
Develop a minimum 4-page paper that examines the topic addressing all questions with at least two references and bibliography.
A competitive firm uses a single input x to produce its output y. The firm's production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x.
every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.
Explain the paradox, "When a person marries his or her gardener, GDP goes down." 9. Examine the price-change numbers shown in the example on page 403.
Call this graph Graph 1. Label this demand curve D1, and this supply curve S1. Draw the new demand curve given by this change, labeling it D2. Show the new equilibrium price and output, labeling this point A.
Suppose that the price elasticity of demand for cigarettes is.46 in the short run and 1.89 in the long run, the income elasticity of demand for cigarettes is .50, the cross price elasticity of demand between cigarettes and alcohol is -.70.
Which of the following is most likely to shift out the Arbocali production possibility frontier?
If the labor market always clears, is there any unemployment? Any cyclical unemployment? What does it mean for the labor market "not to clear"?
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