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What is the basis of the kinked-demand model? Explain the reason for the gap in the oligopolist's marginal-revenue curve. How does this model explain price rigidity in oligopoly?
Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic? Illustrate your answer by assuming that with advertising, a firm's demand curve has price elasticity of -1.5 and without advertising, it is -2. If MC is $10, what is the difference in the profit-maximizing price?
Why is U.S. economic growth important to the average American and what is the best way to measure standard of living of the average person: (use unemployment rate, inflation, & GDP in your answer)?
Quantities purchased are the same but prices are not. What does this mean in terms of the marginal rate of substitution at those quantities?
Draw a supply/demand diagram of the market for "loanable funds" in the U.S. Use the "interest rate" as the "price" of loanable funds on your diagram. Show the effects of a rise in the expected inflation rate on your diagram.
exercisegodzilla and macrosoft produce software and operating systems respectively both at marginal cost 10. each firm
as an international economist you have been asked to prepare a short speech which answers the following questionshow
to be specific suppose we have a two-period model. an individual earns labor income y0 100k at time zero and earns no
State and explain the law of diminishing marginal utility and do the same for the law of diminishing returns and identify and explain two similarities and two differences between these two laws.
Determie what geopolitical events helped shape John Maynard Keynes theories and how did they shape the future of economic policy in the United States and other Western nations?
Using equation y*=A(k*)^(1/3), the prediction of the Solow-Swan model, and assuming labor is constant; explain why the growth rate of TFP is equal to growth rate of GDP per capital
twenty-first century electronics has discovered a theft problem at its warehouse and has decided to hire security
Three fans are to be installed at a mine site; one immediately at a price of $260,000, one in five years at an estimated cost of $310,000 and the third in eight years at a cost of $480,000. Find out the total expenditure as a present value if the ..
Suppose that a system of unemployment compensation isinstituted in the country, and the average duration of unemploymentrises for two months: a )What will be the unemployment rate for this economy now
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