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During a recession you would expect the difference between the 6 mo commercial paper rate and the yield on US 6 mo T-bill of the same maturity to: A. Be the same since their maturities are the same B. Increase reflecting the possibility of higher default risk for commercial paper. C. Decrease since interest rates are procyclical D. Increase or decrease. Depending on the slope of the yield curve
A firm has $1,900,000 in sales, a Lerner index of 0.55, and a marginal cost of $50, and competes against 800 other firms in its relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over marg..
Evaluate whether each of the following statements is true or false. Explain your answer and provide supporting rationale. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run a..
If the cost of rare earth (a resource for producing smartphones) increases, then supply for Samsung smartphones will _____, and quantity will _____.
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
Identify which of the following statements is always true for a natural monopoly as the number of units produced (output) increases.
Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted by M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = m5 B5 and wants to produce 10 barrels of pale ale this week. How..
q1. explain how does an increase in transport costs change the gains from trade in melitzs 2003 model? are the effects
What is the average fixed cost of producing 4 units of output and What is the marginal cost of producing the third unit of output.
Compare and contrast your chosen websites: which website is more likely to be successful than the other, and why and How well does the website personalise the experience for users?
She put her savings into mutual fund that paid a nominal interest rate of 7 percent a year. CPI was 165 at beginning of year and 177 at end of year. Illustrate what was real interest rate that Sally earned.
Illustrate output quota q1 would the typical firm have to be limited. Explain how much would it like to produce.
What would the government likely challenge a merger where a firm with 20% share is attempting to acquire a firm with a 5% share.
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