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Short and Long Run. Let's assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run?
Guided Response: Review the discussion board posts of your classmates. Discuss the difference between short run and long run with relation to costs. Respond to at least two of your classmates. Discuss how short run and long run vary in a firm.
compute the price elasticity of demand between successive points. Which price maximizes publisher's revenues. Calculate and explain.
While negotiating the future amount, Wylie notes that he would be willing to take no less than $5,700 if he has to wait a year. What is his TVOM in percent?
In which direction will the scale effect change the firm’s employment of labor? c. Can you say conclusively whether the firm will use more or less labor? More or less capital?
Can Alpha make a credible threat to punish Beta with a retaliatory price cut
Find out statistics on the web from 2004 to present on following indicators of the macroeconomic conditions of the U.S. economy.
Suppose current interest rate is 5% and you pay $250 for a bond. How much should bond pay you in one year.
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
At prompting of United States, Japan relaxed restrictions and allowed companies to invest anywhere in world. What effect do you think this had on yen/dollar exchange rate and trade balance between two countries.
How does this policy affect the total quantity of investment? The quantity of business investment? The quantity of residential investment?
What does the airline pilot’s supply curve in the Case in Point on how she has dealt with wage cutbacks look like? Does the substitution effect or the income effect dominate? How do you know?
A concerned Congress votes to impose a price floor $2 above the equilibrium price. Illustrate what is the new market price.
By signing a trade agreement illustrate what does this imply as regards international trade theory of the Ricordian model.
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