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Assume for a perfectly competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $16. On the basis of this information, the firm should not be in production. Do you agree?
An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1,500 will have been accumulated. With interest at 4% per year, compounded semiannually, how much should be deposited now?
An automobile company is building a new factory in your town. what may be a positive externality of this event?
Studies have shown a link between rising debt-to- GDP ratios and real interest rates. Investment is not the only category of spending that might be sensitive to interest rates.
Explain how the locations of each of the four curves graphed in question 7b would be altered if (1) total fixed cost had been $100 rather than $60, and (2) total variable cost had been $10 less at each level of output.
Why might the misery index consist of measures of unemployment and inflation rates? What are the negative consequences of high unemployment (especially cyclical unemployment if it persists for a long time) and high inflation for the economy?
Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy is a small country with perfect capital mobility and a flexible exchange rate.
What are the prospects for profitable investments infinancial markets? Do markets follow a random walk so that profitsare mostly a matter of chance? Is it possible to outguess themarket? What are the best investment strategies?
If a firm has created value is it also always able to capture that value How does a firm create value and then what must it be able to do to capture that value Please provide an example of a firm that has been able to create value.
the charm city bakery makes coffee cakes and danish pastries in large pans. the main ingredients are flour and sugar.
Suppose all employers in city c decide to adopt a 4-day week, so that workers ether work 10 hours per day for 4 days or work at home for one day a week. Wages remain the same. How does this change affect the bid rent function
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
Suppose the ABC Corporation adopts a policy prohibiting its top-level executives, whose compensation packages-Use economic theory to analyze the incentive effects of this prohibition.
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