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According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's service is cheaper than MCI's. Suppose that the typical consumer is a small business, Woodbrook Electronics. Woodbrook uses MCI as their long-distance carrier and currently places 100 calls per month. MCI charges a price of $0.80 per phone call. Woodbrook used to subscribe to AT&T and placed 90 calls per month at AT&T's old rate of $.90 per phone call, but switched to MCI to take advantage of the lower price. Based on this data, estimate the equation for Woodbrook's demand assuming it is linear.
the mainstream theory of the business cycle, is the most common source of reciession: a decrease in aggregate demand, a decrease in aggregate supply, or both.
Compute the gross price paid by consumers after a per-ticket tax of $4. Calculate the after-tax price received by ticket sellers.
The World Bank projects that the world's population will increase from 7 billion today to 8 billion in 2025. World output today is roughly $80 trillion. What is global per capita income today? $ What will per capita income be in 2025 if the world's e..
When the actual Lorenz curve is as far away from the 45-degree line as possible, there is. One way to reduce the degree of income inequality is to. The Gini coefficients for countries A and B are 0.25 and 0.30, respectively. We can definitely conclud..
A country has national saving of $80 billion, government expenditures of $40 billion, domestic investment of $60 billion, and net capital outflow of $20 billion. What is its demand for loanable funds?
As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of other goods? Explain.
The treasurer of a firm noted tha many invoices were received with the following terms of payment: "2%- days, net 30 days." Thus, if the bill is paid within 10 days of its date, he could deduct 2%. Or the full amount would be due 30 days from the inv..
The following, adapted from a merger case in 2014, were the approximate U.S. market shares of different cigarette companies: Altria, 47 percent; Compute the Herfindahl for this market, showing how you arrived at this number. Suppose that Reynolds Ame..
Resource price differentials that do not trigger the reallocation of resources are known as
Law of demand does not hold since attendance at the major league parks has dropped while at the same time ticket prices have fallen.
The three families are considering putting in streetlights on Main Street and are trying to describe how many lights to install. The table below shows each family's willingness to pay for each streetlight.
Economists discuss that there is an efficient amount of pollution abatement. Why is the efficient amount of abatement unlikely to be either zero or 100 percent?
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