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According to some translations, Nobel laureate Albert Einstein once said, " God does not play dice with the universe." Does this mean that a profit-maximizing firm would never use something like dice or a roulette wheel to help shape its pricing decisions?
1. Discuss your top three resources which are "must haves" for a student in your chosen profession (do not forget to provide the proper references for your classmates' benefit). 2. Why are they important to you as both a student and a professional?
Suppose you are a central planner in a communist country, and it is your job to set the price of rutabagas. The first person assigned to this job set a price of 10. This resulted in 40 tons of rutabagas supplied and 75 tons of rutabagas demanded.
It goes on to say that using these three tools, the Federal Reserve influences the demand for and supply of balances that depository institutions hold at the Federal Reserve Banks, and in this way, it alters the federal funds rate. The federal fun..
Assuming that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces. Calculate its profit-maximizing output and price and show just the Output number and Price per unit.
Elucidate what is the cross elasticity of demand for pipes and pipe tobacco.
Elucidate the elasticity of demand given the price and income combination.
A company finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage costs.
Macro economic choices, particularly in the areas of fiscal policy, are not just about economics but about deeply social targets and prices as well. This Case asks you to think about some of these dimensions.
(Contractionary Gap) What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate What does it imply about the actual price level relative to the expected price level
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Explain how would either decision change if the government imposed a 20 percent tax on earnings and interest income. Illustrate what would happen if the government exempted interest income.
Elucidate the roles played by total utility and marginal utility.
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