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Problem
Suppose the government of the economy in exercise 8 is considering subsidizing credit. Assume that this government works as a social planner, striving to maximize the sum of the utilities of all individuals, net of the cost of subsidies and subject to the bank's break-even constraint. Assuming that the bank charges all borrowers the same interest rate and all loans are therefore equally subsidized, would the government decide to subsidize lending? Calculate the utility of each of the individuals and the social welfare, then compare them with the situation without subsidies in Is subsidization Pareto optimal?
company a is a producer of widgets in a monopolistically competitive market structure. it is projected that as more
grand corp. issued 20000000 par value 10 convertible bonds at 99. if the bonds had not been convertible the companys
How does monopoly compare with pure competition in terms of price, output, and efficiency? Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not, even when both seek to maximize profits.
imagine you were studying marxism together with a friend and the friend said to you doesnt the labor theory of value
A food company buys butter from a dairy cooperative and distributes and sells it to restaurants. The next three months have estimated demands of 3,000, 7,000, and 5,000 pounds.
In production strategies, describe chase-production, Level Production and mixed-combination. Give an example of each in logistics field.
What about lowering interest rates and increasing money supply (i.e., monetary policy) If you were the chair economic advisor to the President of the United States, what would be your advice to him What does the Scripture have to say about money
suppose that a household in a two-period model has income of 30000 in period 1 and 25000 in perod 2 and the interest
Assignment: Selection and Description of Organization. Overall organizational strategy and business model. Write an overview of the organization you selected.
What extent is your organizations financial health affected by fiscal and monetary policy? Please give at least one specific example.
Suppose the minimum average variable cost of producing a good falls due to technological improvements. Show in a diagram how this affects the supply curve of a typical competitive firm and the supply curve of all firms in the industry
Analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic or inelastic: Bottled water and Toothpaste
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