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a. Explain the concept of the multiplier, and explain the role of the marginal propensity to consume in determining the size of the multiplier.
b.Explain how the size of the multiplier will change when one brings in the role of the marginal tax rate.
c.Using the concepts in parts a and b above, calculate the slope of the AE curve and the size of the multiplier if MPC = 0.75. Then, calculate the revised slope of the AE curve and the multiplier when you know that the imports and the marginal tax rate will reduce the slope of the AE curve by another 0.30.
question 1 discuss using examples and academic references the statement that perfect competition gives an optimal
Substituting this value into the price elasticity of demand formula we obtain ∈=
profit = (quantity of output) x (price - average total cost), marginal revenue = (change in total revenue)/(quantity of output).
debbie listens only to frank zappa or weird al yankovic. she currently buys 10 zappa and 20 yankovic downloads per
One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at th downtown loaction plus the cost of making the move. THe other parnter at the PBS opposes the moves.
suppose a firm faces the following demand for their product p100-q. further assume that the marginal cost to produce
1.suppose the fed decides to stimulate the economy. assume there is no cash leakage and required reserve ratio is 25
organization in concept and practicebullanalyze the potential downfalls of any team effort e.g. free riders and make at
Compare the path of economic growth using GDP, GDP growth, and GDP per capita. Compare the evolution of Agriculture and Manufacture as components of GDP.
If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that marginal revenue exceeds marginal cost.
The production capacity of the first year will be 4000 units and determine whether the company should upgrade or replace. Use a MARR of 20% per year.
Determine the least cost size and number of the milk processing plant using the equation and Derive the marginal cost for the two products 1&2 and show that it is a constant.
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