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Some people (e.g., Hayek) argue that decentralization of economic decisions in the economy leads to an efficient resource allocation. What differences exist within the firm that make the link between de- centralization and efficiency less clear?
The North Arctic Rangers Federation (NARF) bought a $32,500 car.The loan has monthly payments of $610.34 for 5 years. What is the interest rate (APR) on the loan? What is the effective rate?
Identify which of the following are extent decisions. Decide whether to expand an existing product into a new region. George’s T-Shirt shop products 5,000 custom-printed T-shirts per month. George’s fixed costs are $15,000 per month. The marginal co..
Although there was no migration between the states, after Jan. 2003 employment rose in Hamilton and fell in Franklin. How can this be explained.
Develop a strategy for a firm to make sure it’s products always stay a big step ahead of its present competitors and also ahead of anyone else who threatens to come into their markets and compete with it. When you then put the strategy into execution..
Consider some determinants of the price elasticity of demand: The availability of close substitutes. Whether the good is a necessity or a luxury. How broadly you define the market.
The Case in Point titled “Some Reflections on the 1970s” describes the changes in inflation and in unemployment in 1970 and 1971 as a watershed development for macroeconomic thought. Why was an increase in unemployment such a significant event?
q.motorolas iridium a go-anywhere mobile phone system that beamed signals down from 66 satellites was called the 8th
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $55,000 and her store made $115,000 in profits (not counting payment to her top manager). She suspected t..
Imagine you are the chairman of the Federal Reserve. Assume your objective at present is twofold; to stabilize inflation and economic activity. Given your objective, describe your response to each of the following scenarios in math, pictures, and wor..
You are the president of a commercial bank that is also a member of the Federal Reserve System, and you want to increase your bank’s reserves. But you currently have negative excess reserves, in which case your bank is borrowing from the Fed and the ..
Barbara’s utility for 2 goods X and Y is given by U(x, y) = x^0.6y^0.4. Let I denote income and px and py denote the prices of good X and Y respectively. What is Barbara’s gain in consumer surplus if price of good X decreases from $20 to $15
Given this information, evaluate the following statement: Airlines could have the same effect on demand by eliminating their frequent flyer programs and simply lowering the average ticket price by 10 percent.
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