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Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial economics) were interviewed regarding the effect on the firm they both work at. Keeping all elsr constant their answer would likely differ. How do you guess the interviewed will answer? Does the diference in response matter? If yes why? if no why?
The decline in cigarette sales was estimated at 8 percent. What does this imply for the elasticity of demand for cigarettes? Explain?
When the price of wheat rises, the quantity of when demanded falls, and when price of wheat falls, the quantity of wheat demanded rises. Therefore, the demand for wheat is not a horizontal line.”
Illustrate what are the different types of inflation. Elucidate why is it important to know which type of inflation we may be experiencing.
What should Honda and Toyota do to manage this short term average price increase.
Explain with the concept of optimization and a graph, the circumstances under which a waste site could be made "too clean".
Illustrate what amount of profit does the industry fail to pick up by refusing to increase output by one unit
Suppose that there are two products: soda along with clothing. Both Brazil and the United States produce each product.
Elucidate how it is possible that we have "sustainable development" (as it is defined in text book) in a world in which minerals, oil and or non-renewable resources are being depleted.
Assume an economy with an aggregate production function of the form Y = 1.5K. If the nation’s population grows at 5%, the rate of depreciation is 3%, and the savings rate is 8%, what is the steady-state output per capita level?
A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Compute demand elasticity using the midpoint formula.
Draw a graph of a market for a firm in a perfectly competitive industry. Indicate the short run profit maximizing quantity and the profits for the firm.
Illustrate what are the values of the tax-adjusted utilize cost of capital, the desired future capital stock also the desired level of investment
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