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1. It is said that there is no completition in a perfect competition situation. Why? Give an example to illustrate this.
2. Name 3 commodities that you would consider to be bought and sold in a perfect competition market situation.
3. If someone is producing corn and making a lot of money by doing so, what will happen in the short-run? Long run?
The own price elasticity of demand for apples is -1.2 if the price of apples falls by5%, what happen to the quantity of apples demanded?
Given the technology and the amount of other resources available, the position of the demand for labor depends on the
What is the future worth of a series of even payment series of $1,674 made at the end of each 6-month period for 9 years at 6 % compounded semi-annually?
A good is not depletable if:
If you borrowed $24,000 today and you have to pay them back in five equal payments over 10 years (one payment every 2 years). With 8% interest rate compounded annually, what is the amount of each payment? (C=?)
Disability payments replace a higher fraction of the wages of low-wage workers than of high-wage workers.
Suppose the production of Crocs is characterized by the production function Q = LK , where Q represents the number of pairs of Crocs produced. Suppose that the price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-mini..
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
What is “effective demand” according to keynes? How can there be a lack of effective demand? How did keynes explain that aggregate production and aggregate spending might not be equal? What happens if aggregate production is greater than aggregate sp..
In a world of completely selfish individuals, if we could measure each person's marginal value for his or her own medical care, what conditions must be met in order for the healthcare market to be at an optimal level of output?
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
Suppose that inflation rate is 8% annually and real interest rate is 1.85% annually. If we are planning to have an amount of money at the end of fifth year which has the same purchasing power as $1361.17 today, how much money we need to deposit each ..
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