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The government of a large United State city recently established a living wage law that starting January 1 of next year, will require all businesses operating within the city limits to pay their workers a wage no lower than $8.50 per hour. The current equilibrium wage for fast food workers is $7.50 per hour in this city. Predict what will happen to each of the following beginning on January 1 of next year:
1. The quantity of labor supplied by fast food workers2. The quantity of labor demand by fast food producers3. The number of unemployed fast food workers in this city
The following table provides data about the economy in Argentina. Column A is the year, Column B is real GDP in billions of 2000 pesos, and column C is the price level.
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, explain how much output must the firm produce to break even?
When an employee walks away from work with a box of pens that belong to their employer;
Illustrate what school of thought would make this suggestion, and how do economists of that school justify that prescription.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Explain how have they implemented the policy changing the "interest rate", changing the reserve ratio, or open market operations. How has this policy impacted you and/or your company.
Elucidate how tax credit to a business would help to stimulate the economy.
Compute Foust's after-tax cost of new debt and common equity. Calculate the cost of equity.
What type of market structure is OPEC? What are some important issues that OPEC must confront in their efforts to control the price of oil?
Would you assume this as an externality, and if you do, what would you suggest be done about it.
The demand for polished bronze is given by P = 100 - Q/2. Production of polished bronze is controlled by Bronze Indentify BIs profit maximizing output and price. What is the cost to the town of removing the mercury pollution?
Elucidate assumption concerning economies of scale will give rise to a determinant and optimal scale of the firm in Long run equilibrium in perfect competetion.
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