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In a monopolistically competitive market, the government applies a specific tax of $1 per unit of output. What happens to the profit of a typical firm in this market? Does the number of firms in the market change? Why?
A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at end-of-year one and increase by $1,000 for each of the next four years, and then..
Suppose that you are a product manager in charge of planning production of three products in various countries around the world. The table below contains information on the income elasticity of the three products.
How might a critic respond to the claim that taxes always make the allocation of resources less efficient?
Ball bearings cost $.05 each, and bubblegum costs $.20 each. Your enjoyment of the experiment will be characterized by the utility function U(B,G) = (B^.2) * (G^.8). If you have $10 to spend on this experiment, how many ball bearings will you buy
List the similarities, paragraph-by-paragraph, between the two reports
What are the implications of these results for a policymaker who wants to assess the costs of a recession?
There are 168 hours in a week. Of these, about 60 hours will go to sleeping (more or less). That leaves 108 hours for which we have a choice in terms of how we will spend that time. Let's assume that we will spend the 108 hours in either work or l..
If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), what was the actual annual compound growth rate?
Assume that when the price of good X is $10, each, I buy none. When the price is $9 each, I buy 1 per period. When the price is $8 each, I buy 2 per period. When the price is $7 each, I buy 3 per period.
Explan how this could br true using aggregate demand and aggregate supply analysis.
a. Draw each budget line. Represent the chosen bundles, naming them respectively A, B, C, D, E. b. Is this consumer's behavior compatible with the weak axiom of revealed preferences? c. Circle in red those points you are sure they bring less utilit..
Suspose kate is an avid reader and buys only comic books. Kate deposits 2000 in a bank that pays an annual interest rate of 20%. At the time of her deposit a comic book cost $10.00. Intially, the purchasing power of kates $2,000 deposit.
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