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Suppose now that the cost of capital in the previous question rises to $3 per unit. Graph the new long-run average cost curve, and compare its position with the curve in that question.
Consider a bank with the following income statement: It has $100 in loans with an interest rate of 5 percent; $50 in security holdings, paying 10 percent; reserves of $10; $100 in savings accounts that earn an interest rate of 2.5 percent.
advanced analysis given the following diagrams q1 12 bags. q2 7 bags. q3 19 bags. the market equilibrium price point
Based on your estimate of the Buffalo Bomber's own price elasticity of demand (ignoring for the moment the changes in income and the price of the main competitor's bicycle), would the company be better off increasing prices for the new model year
What price will the monopolist charge for his output?
A competitive firm uses a single input x to produce its output y. The firm's production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x.
What does it mean when substitution effect equal zero? explain with graph and example what does it mean when income effect equal zero? explain with graph and example
Carnack contracts to sell his house and lot to Willard for $100,000. The terms of the contract call for Willard to pay 10% of the purchase price as a deposit toward the purchase price, or as a down payment.
how can you explain this is words We can't say consumers are going to save a portion of the 10 taxes because you can't save something that is being taken away from you. Why does the autonomous expenditure decrease by a fraction of the tax in this..
If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the inflation rate, the growth rate of money, and the gro..
Notice that average product (that is, output per worker) continues to rise after marginal product has fallen. Why How can it be that output per worker can rise after the point of diminishing returns has been encountered
consider the indirect utility functionvp1 p2 m m p1 p2a. derive the marshallian demand functions.b. what is the
Suppose capital is fixed at 16 units. If the firm can sell its output at a price of $100 per unit and can hire labor at $25 per unit, how many units of labor should the firm hire in order to maximize profits?
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