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Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output.
a. How does this tax affect the firm's fixed, marginal, and average costs?
b. Now suppose the firm is charged a tax that is proportional to the number of items it produces. Again, how does this tax affect the firm's fixed, marginal, and average costs?
Find the overall change in the economy's money supply if, when the reserve ratio is 5%, the Federal Reserve System buys $250 million of US government bonds from the banking system. What would have been the change if several billionaires deposited ..
A firm uses two inputs, unskilled labor (L) and capital (K) to produce its product. The wage rate for one unit of labor is $5, while units of capital cost $20.
You are trying to decide whether to buy some laptop computers for your business in either Canada or in United States. Looking at identical machines on the Dell Canada and the Dell US web sites, you find that they sell for US $2000 (US dollars) in ..
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Explain her change in consumption in terms of income and substitution effects (give a precise quantitative answer). Is this a Griffin good (how do you know)?
Describe the US household is harmful to the economy with the use of AS-AD diagrams.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
If your payroll (budget) is increased to $120,000, what should you do to maximize the number of customers served?
Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants.
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
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