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Suppose that Congress is considering imposing a 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such a move?
What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?
Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
Find out the equilibrium market price. Find out the profits of the leader and the follower
The kinked-demand schedule that an oligopolist believes confronts the firm is given in the table below. Compute the oligopolist's total revenue at each of the nine prices
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.
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