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During a ?ve-year period, the ticket sales of a city’s professional basketball team have increased 30 percent at the same time that average ticket prices have risen by 50 percent. Do these changes imply an upward-sloping demand curve? Explain.
The demand for borrowed funds is, The income of Lebron James, for example, is determined by, The income to someone such as Lebron James is
What are the external effects ( externalities ) and why they can lead to inefficiencies and government intervention in the markets. Why are some government policies to manage external effects effective ( efficient ) while others are inefficient ( ine..
If the interest rates are zero bound, compare the effect of an expansionary monetary and fiscal policy. Draw graphs to show these effects and also explain in words. (Hint: Don’t consider negative interest rates. If interest rate is zero, will monetar..
In a market where government has set the maximum price below the equilibrium price, one might expect:
In oligopoly, each firm is acutely aware of the production and marketing decisions of all competitors and carefully considers the potential competitive reactions in all decisions. Discuss whether firms in other market structures consider the potentia..
Suppose a firm’s total cost curve is TC = 1000 + 10q + 4q2 , such that MC = 10 + 8q. Find the firm’s fixed cost, variable cost, average total cost, and average variable cost. Find the output level that minimizes average total cost. Find the output le..
Suppose Leonard, Nixon, & Shull Corporation's projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
q. abc company expects that it will receive a large order from the spain government. but the order occurs abc will be
AutoTrader.com would like to estimate the number of years owners keep the cars that they purchased as a new vehicle. The following data shows the age of seven vehicles that were sold for the first time by their owners. Using this sample, the 90% conf..
Kermit is considering purchasing a new computer system. The purchase price is $100949. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments ov..
Government sponsored job training program is no different from any other form of resource transfer since resources have been taken from higher valued uses to a lower valued use.
Define external economies of scale and using a graph explain how head start rather than comparative advantage may determine the direction of trade.
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