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Assume that a purely competitive firm is selling 2000 television sets a day at a cost of $90,000. Assume that if the firm sells 1600 units per day, its total cost would be $60,000, and if it sold 1000 units per day, it would have a total cost of $55,000.
(a) In a probit /logit model, the marginal effects of regressor j is defined as ΔP(Y=1|X)/ΔX_j . The marginal effect is dependent on X, and therefore, it is difficult to place a useful interpretation on Beta hat alone. (b) As a simple diagnostic one ..
If the real money demand is greater than the real money supply interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.
Identify the part of the business cycle that is characterized by: The economy is at full employment. The growth rate of aggregate demand exceeds the growth rate of aggregate supply. Recession. Recovery and non-inflationary growth.
the president and chief executive officer of a family owned manufacturing firm with assets of $45 million. The company articles of incorporation and state law place no restrictions on the sale stock to outsiders. An unexpected opportunity to expan..
During spring break, students have an elasticity of demand for a trip to Florida of -3. How much should an airline charge students for a ticket if the price it charges the general public is $360? Assume the general public has a price-elasticity of de..
The introduction of new gaming systems that can effectively compete for the Nintendo console market share will make the demand for Nintendo console to become:
can you identify factors that led to our countrys trade deficit? do you believe our country has developed a great
Draw the world relative supply curve RS for good X. Label all the axes (relative price of good X on the vertical axis and world output of x relative to y on the horizontal axis) and the relevant points.
If he invests an amount (3 in bonds (o (3 K) and is taxed at rate t on his income, write down the expression for his disposable final wealth y, assuming full loss offset of the tax. Find the first-order condition which determines his optimal bo..
Knowledge of economic theory to describe how these policy responses were expected to reduce the health hazards of alcohol consumption in the community.
In March 2004, Ireland was the first country in the world to introduce an outright ban on smoking in workplaces. In the analyses below, when drawing your diagrams assume that workers can choose among only two products to consume at work, namely tobac..
A flood control project with a life of 15 years will need an investment of $250,000 and annual maintenance costs of $20,000. The project will provide no benefits for the first two years however will save $60,000 per year in flood damage starting in t..
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