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Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line 'technology' and (2) the economy enters a 'recession' (which decreases 'income' of consumers). An economist would predict with certainty that equilibrium quantity will rise
You are the adviser to a Benevolent Social Planner. GDP is falling also the economy is in a recession.
Elucidate the phenomenon of market foreclosure. Specifically, explain how a vertical merger may "substantially lessen competition or tend to create a monopoly".
Compute the short-run profit maximizing level of labor and capital demand. Compute the long-run profit maximizing level of labor and capital demand.
Discuss the impacts that entrepreneurship and creative disruption have on existing organizations and the workforce (i.e. machines replacing workers, new skills required due to technological innovation, etc.). Should entrepreneurs be concerned with..
When 2-mutually exclusive projects are considered, NPV calculations and IRR calculations may, under certain circumstances, give conflicting recommendations as to which project to accept.
Assume NJ government decides to impose a $1,000 per student tax on colleges Every college has to pay $1,000 for each student enrolled.
A central bank with a dual mandate will achieve lower unemployment in the long run than a central bank with a hierarchical mandate in which price stability takes precedence. Is this statement true, false, or uncertain?
Suppose that a model of the economy suggests that the real interest rate is determined by the equation R= 8.5 - % ?Y Where Y is the level of output, so % Y is the growth rate of output. Suppose that people expect the Fed to hit its inflation target.
Suppose an individal who moves from Asia to the United State and brings with him life savings of $40,000, which he deposits in a US bank.
Movie tickets prices increased by 5% and resulted in a 8% drop in sales. What is the price elasticity of demand? 2. If ticket prices decreased by 5% instead of raising them, what would the changes in attendance would you expect? 3. If a competing cin..
Illustrate what price-quantity combination maximizes your firm's profits. What price-quantity combination maximizes revenue.
Given a numeric production schedule, you will calculate profit and make decisions about short-run profitability to answer questions relating to your calculations. Jerry's Lock Shop is a perfectly competitive firm, and Jerry is operating at his lev..
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