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Do open market purchases actually work? What real effect do these purchases in the "real world", assuming economic variables, actually have on bond prices and interest rates?
An important way to reduce water pollution from farms is to plant a buffer zone between crops and the water. Economists estimate that for each bush there is a $20 gain in reduced pollution. What is the market clearing equilibrium price and quantity?
A buyer for a large sporting goods store chain must place orders for professional footballs with the football manufacturer six months prior to the time the footballs will be sold in the stores. What is the expected profit in the optimal strategy case..
Rational expectations imply that households and firms are forward looking. What does that say about the importance of a short-run downturn in demand for firm decisions? Explain why firms might hold excess labor and capital during a recession. Explain..
A consumer spends more time searching for a good when her reservation price is:
Imagine how managerial decisions may be easier or more difficult if there were no antitrust restrictions in the U.S. Provide an example to support your response.
3.analyse the two following situations for forms in competitive markets a suppose tha tc 100 15q where tc is total cost
why do land cost tend to fluctuate in a free market and why taxes on land are often regarded as preferable to taxes on other factors. 700 words
Analyze the major barriers for entry and exit into the airline industry. Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to p..
Estimate the likely market evolution of the BRICs (Brazil, Russia, India, and China) over the next decade. What economic indicators might companies monitor to best guide their investments and actions? Identify three implications of the emergence of t..
Suppose a consumer currently has $1000 with which to buy food for this year (c1) and for next year (c2). In both periods, the price of a unit of food is $1. Assuming the consumer has “standard” preferences defined over c1 and c2, depict a typical con..
Daniel Dynamite runs a high end car wash called “Daniel’s Car Wash” … he’s not very creative. The car wash market is very competitive and Daniel has no control over the prices that he can charge. Concerned that he is leaving money on the table, Danie..
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loan able..
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