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During the late 1990s, many observers claimed that the United States had transformed into a New Economy, and this justified the very high values for stock prices observed at the time.
a. Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.
b. Stock prices subsequently decreased. Discuss how this might have affected consumption.
The box industry was perfectly competitive. The lowest point on long run average cost curve of each of identical box producers was dollar four, and this minimum point occurred at an output of 1,000 boxes every month.
Discuss elasticity of demand as it pertains to elastic and discuss cross price elasticity as it pertains to substitute goods and complementary goods.
What is the maximum technical efficiency output level for this firm ? On the diagram above, AVERAGE FIXED COST is the LOWEST at .what Quantity ? On the diagram above, AVERAGE VARIABLE is the HIGHEST at. what Quantity ?
Discuss the various ways governments can handle externalities, such as noise from a local airport or a barking dog or building of commercial office space or an industrial building in a residential area?
A $19,200 mortgage bond that is due in one year pays interest of $600 every three months.1. Find the coupon rate of the bond. ____ I found b=0.125 2. Find the present value of one of these bonds. (Ignore past activity; consider future interest pa..
After few years, cost of production of Panadol increased due to increase in price of paracetamol (one of the main ingredient used in the production of Panadol). Due to this increase people started using Disprine instead of Panadol.
You have opened your own word processing service. You have already bought a special computer needed for word processing.explain that expand your business by hiring an assistant.
The total cost function of a steel company is TC(Q) = 0.0003Q3- 0.02Q2+ 0.5Q + 300 , What is the firm's marginal cost at the level of output 50? At the level of output 100?
What is the payoffof option and illustrate the payoff on a graph with stock price on the x-axis and the payoff on they-axis.
4) Discuss the following excerpt from an article in the Wall Street Journal several years ago. In your discussion use information in the article and the concepts of: "price discrimination," "elasticity" and "barriers to entry" to explain both the ..
When prices change, the income effect and substituion effect both contribute to the impact on quantities consumed. Explain how both effect a consumers utility maxization.
Coles and Woolworths exist as two large competitors in the supermarket retail industry. A marketing firm is interested in measuring dominancy in this specific industry by observing the percentage of market share over several months.
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