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Q1. Firms with costs C = q^2 + 36 face demand P = 24 - nq and behave under the rules of Monopolistic Competition. Compute and illustrate the prices and quantities that occur in the short run, with one monopolist, and in the long run, where entry has occurred. Illustrate, calculate and explain how the efficiency loss is affected by this entry.
Q2. Suppose that CA-Gyros Technology hired an engineer from Hong Kong in the year 2007, and paid her $100,000 salary in 2007. Give a detailed explanation about how the engineer's income generation as described above affects GDP and GNP of U.S.
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour.
What is the difference between a production function and an quant. Explain the law of variable proportions with the help of quant.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace.
Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your respo..
Caught up in broad social and economic disaster that swept the Mediterranean basin during the twelfth century BCE, what seems to have happened to the civilization of people.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front.
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