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Q. Consider the following information about a business Diane opened last year: price = $4, quantity sold =10,000; implicit cost = $14,000; explicit cost = $20,000. What was Diane's economic profit?
Q. Suppose the price of apples goes up from $22 to $25 a box. In direct response, Goldsboro Farms supplies 1500 boxes of apples instead of 1000 boxes. Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply.
An existing company is considering expanding into a new product line that will use the same factory as its existing products.
If a price in a competitive market is "too high to clear the market," what does this normally mean. Assume upward-sloping supply curves.
Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
Discuss a scenario where either the supply or price of a good or service is intentionally limited by the government.
The airline is considering building a new training center on this land.
Chrysler announced a new incentive program on its minivans that included subsidized interest rates also cash allowances.
Illustrate what was the growth rate of the GDP deflator between 1999 and 2000. Elucidate what was real GDP in 1999 measured in 1996 prices.
Find out the optimal price-quantity if the firm can price discriminate but cannot charge a two part tariff.
If the prices of gold and other commodities increases how will this influence the value of the rand. Explain how will a depreation of the rand influence our exports and imports.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.
Elucidate how formal organizations have evolved over the past century. What differences were there in organizations a century ago, compared to today's organizations.
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