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Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of? gasoline, holding other things? constant, will cause which of the following to? occur?
a) increase the demand for gasoline b) decrease the demand for gasoline c) increase the quantity of gasoline demanded c) decrease the quantity of gasoline demanded
Draw a graph showing a set of isoquants that depict capital and labor to be perfect complements (not substitutable at all) in a production function that exhibits constant returns to scale. Be sure to label the input and output levels on the isoquants..
suppose there is 120 million of cash and that half of this cash is held in bank vaults as required reserves that is
If a firm’s output is produced according to Q = 4LK, the price of K is $10, and the price of L is $40, what is the cost-minimising combination of K and L capable of producing 64 units of output? The cost-minimising quantity of K is? The cost-minimisi..
Suppose that the K/L ratio is higher in Germany than in Britain. What would you expect to happen to wages in Germany as trade took place between the two countries? Why?
Caroline has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm’s website in exchange for someone doing their tax returns. Which of the following principles of economic in..
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
The aluminum industry faces a private marginal cost curve PMC = Q and a market inverse-demand curve of PD = 20 – QD. However, production creates an externality with marginal damages of MD = 2. Graph the private marginal cost, the social marginal cost..
Ace contracted with Jones to do certain remodeling work on the building owned by Jones. Jones supplied the specifications for the work. The contract price was $70,000. After the work was completed, Jones was dissatisfied and had Clay, an expert, comp..
q.in ua villa 1000 people live on main street that is 10 miles long. every day each of the 1000 people will buy 1 fruit
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe now has an absolute advantage in producing spaghetti? Which has the comparative ..
what should you do when the manager of a perfectly competitive firm whose short run cost is TC = 100 + 160Q + 3Q2. If the market price is $196.
Compare and contrast the facility costs of VectorCal and the US Government. Determine at least two advantages for using facility costs for both VectorCal and the US Government. Explain your rationale. "Procedures of FCCOM".
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