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Cost-push inflation occurs because
A. production costs have risen
B. a demand shock has occurred
C. the AS curve has shifted rightward
D. unemployment is greater than the natural rate
Advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service.
The quantity demanded x of a certain brand of DVD player is 3000/week when the unit price p is $485. For each decrease in unit price of $20 below $485, the quantity demanded increases by 250 units. The suppliers will not market any DVD players if the..
q.global studios are thinking of producing a mega film aqua world which could be a mega hit or a mega flop. profit is
Illustrate what happens to total income from shoe sales (Estimate P x Q before and after cost change). Repeat exercise for initial costs being decreased to $40 and $20, respectively.
Explain how "discretionary fiscal policy" can be "countercyclical" and can be used to support aggregate demand. Us an AD/AS model to support your answer.
One of the central ideas taught in econonimics is that fixed costs are sunk costs, and that fixed cost are irrelevant to current decision making. Show why this true through the use of calculus and the idea of profit-maximization.
Why do national income accountants compare market value of total outputs in various years rather than actual physical volumes of production.
Your company has just signed a three- year non renewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment cost $200,000 and qualifies for 5 year..
Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?
Firm 1 and Firm 2 compete in an industry and must decide whether to introduce an upgrade to their existing products. The nature of the strategic interaction is described by the game box, where (Y) means “upgrade” and (N) means “do not upgrade”. Draw ..
Suppose that the labor market is competitive and there are a total of 1,000 black workers and 1,000 white workers (who each supply their labor in elastically). Both black and white workers are equally productive, having constant individual dollar pro..
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Now use the diagram from part A) to show the new long-run equilibrium of the economy. (Assume there is no change in the long-run aggre..
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