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What are the costs and benefits of achieving price stability relative to output stability?
Suppose that firm 1 and firm 2 operate under conditions of constant average and marginal cost but that firm 1’s marginal cost is c1 = 10 and firm 2’s marginal cost c2 = 8. Market demand is Q = 500 − 20P. Supposee two firms practice Cournot competitio..
When the government imposes a binding price ceiling on a competitive market, a shortage of the good arises, and sellers must ration the scarce goods among the large number of potential buyers.
Two hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 500Qmill+ (Qmill)2 where Qmill indicates the mills annual production in thousands of tons. The marginal cost of ..
Evan and Wurster discuss the trade-off of “richness and reach” in the environment of decreasing costs of information technology and information. How does this trade-off affect business strategies? Please present an example of a transformed business.
Using the following tax bracket cutoffs (the cutoffs represent the top of that bracket) calculate the income tax liability for someone with $250,000 of taxable income. (taxable income means that all deductions and exemptions are already accounted for..
Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) where interviewed regarding the effect on the firm they both work at. Keeping all else constant, their answ..
A market is made up of two consumers. The first has a demand P(1) = 1200 – 3q and the other has demand P(2) = 1200 – 6q. There is one firm in the market acting like a monopolist with costs = Q^2 + 90,000. Assume the firm can perfectly price discrimin..
As price elasticity of supply increases, the supply curve 1) becomes flatter, 2) becomes steeper 3) becomes downward sloping, or 4) shifts to the right?
Analyze graphically the AD-AS model, the Keynesian cross, and the IS-LM model. Identify all relevant curves and causes for shifts in the curves. Explain the evolution of the monetarist and new classical theories.
Describe New Zealand's approach to inflation targeting. What are the advantages and disadvantages of this system? Would it make sense for a central bank to try inflation targeting by using the tailor rule? What problems might the central bank encount..
Antitrust laws and managed care have had a significant influence on market competition in the healthcare industry.
Explain the most important concepts covered in this course in two sentences. The textbook identified several areas of enterprise architecture. Sum up the most important concept that you learned in 140 characters or less.
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