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In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would expect an increase or decreasee in total revenues?
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
After years of civil war, the Republic of South Sudan must rebuild its infrastructure from scratch. Its government is eager to encourage infrastructure investment by private investors. South Sudan has achieved greater productivity for each unit of ca..
Illustrate what would neoclassical economists and new dissidents have to say about former Bush Administration's efforts to push forth a Free Trade of Americas with our South American, Central American and North American neighbours.
What are the effects of taxes on price level? Why? In your opinion, do taxes lead to efficiency or inefficiency? How does a free market eliminate a surplus?
If income elasticities are equal for all goods, then all Mashallian demand functions must be downward sloping.
Consider a farmer who can either plant or market/consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from 2 ears of corn, he gets 4 ears of corn at harvest. Assume he starts off..
the technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your can and automatically charges you for the use of the road. Explain how would this affect bottlenecks and..
A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and parameters of each process are as follows
The U.S. Surgeon General issues a report stating that tomatoes prevent colds. What is the effect on the market for tomatoes? b. A new type of robot is invented that will pick peaches. What is the effect on the market for peaches?
Explain how a Central Bank (e.g. the US Federal Reserve Bank, or "Fed") functions in order to: a) control the monetary base ("Hint": the amount of high-powered money); and b) through this control
If congress took steps to consolidate banks, thereby reducing the total number to 2,500, illustrate what would you expect to happen to costs within the banking industry.
Consider the following goods and services. Which are the most likely to be produced in a perfectly competitive industry? Which are not? Explain why you made the choices you did, relating your answer to the assumptions of the model of perfect competit..
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