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In the aftermath of a hurricane, an entrepreneur took a one-month leave of absence (without pay) from her $4,000 per month job in order to operate a kiosk that sold fresh drinking water. During the month she operated this venture the entrepreneur paid the government $2,000 in kiosk rent and purchased water from a local wholesaler at a price of $1.23 per gallon.
Write an equation that summarizes the cost function for her operation, as well as equations that summarize the marginal, average variable, average fixed, and average total costs of selling fresh drinking water at the kiosk. If consumers were willing to pay $2.00 to purchase each gallon of fresh drinking water, how many units did she have to sell in order to turn a profit? Explain carefully.
If the full-employment level of Y is $250, what fiscal policy might the government follow? d. Suppose Y = $200, C = $160, S = $40, and I = $40. Is Nurd's economy in equilibrium
Realizing that the major function of benefit is to allocate resources according to consumer preferences, why are some groups in United States extremely critical of companies that earn increasing benefits
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
Based on absolute advantage and comparative advantage, Elucidate the effect of global economic conditions on the choices available to that country.
Compute the 10-year growth rate forecast using the constant growth model with yearly compounding, and the constant growth model with continuous compounding for each occupation.
During the Great Depression, federal government swung into action to help farmers. In 1933, it established a system of price support for several agricultural products.
Illustrate the notion that people are rational respond to incentives consider an experiment conducted by researchers at St. Luke's Roosevelt Hospital in New York City.
Explain how an increase in interest rates initiated by the Federal Reserve affects:
As an worker of the World Bank you have been asked to research the requires of two nations with a particular concern. I have selected Mexico and Argentina.
Suppose that the interest rate is determined by; M/P=d1Y-d2i, where P is the price level, Y is real GDP and M/P is real money stock,
When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
Suppose the public in Nealland does not hold any cash. All commercial banks, however, hold 5 percent of their checking deposits as excess reserves, regardless of the interest rate.
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