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By consumer surplus, economists mean:
a) the difference between the maximum amount a person is willing to pay for a good and its market price.
b) household saving Y-T-C.
c) the area inside the budget line.
d) the area between the average revenue and marginal revenue curves.
Given the Demand curve for flyswatters Q = 500-50P, estimate the quantity demanded for the following prices.
Do incumbent politicians utilize their power and influence to get re-elected. Is this a "valid" use of political power. How does this impact business firms. Please discuss.
In 2008, AIG was at risk of declaring bankruptcy and defaulting on its debt. As a result, the U.S. government stepped in and provided funding for AIG, essentially insuring creditors that they would recieve their debt payments. After the government..
Total production (TP) and the level of natural real GDP (NRGDP) for a hypothetical economy are represented on the graph that follows. When real GDP is $525 billion, consumption is $420 billion, government purchases are $75 billion, and investment is ..
Rising jet fuel cost recently led most major U.S. airlines to raise fares by approximately 15 percent. Explain how this substantial increase in airfares would affect the following:
A firm wants to lease some land from you for twenty years and build a warehouse on it. As your payment for the lease, you will own the warehouse at the end of the twenty years.
Harold owns a cranberry bog in which he grows cranberries. Harold’s farm is a competitive, profit-maximizing firm. As such, Harold much decide.
If an investor implemented a reverse cash also carry trade, what would the arbitrage profit be.
On the same graph, draw the daily budget constraint under The Texas Family Assistance Program for the single parent described above. Find the earnings level at which the earnings subsidy ends. Discuss the effect of the program participation on wor..
Jason enjoys DVDs and spy novels and spends $60 a month on them. The price of a DVD is $20 and the price of a spy novel is $10. a. What is Jason's real income in terms of spy novel b. What is the relative price of a DVD
Illustrtae what is the profit-maximizing level of price and quantity for this monopolist.
The New York Times cost $0.15 in 1970 and $0.75 in 2000. Average wage in manufacturing was $3.23 a hour in 1970 and $14.32 in 2000.
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