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When McDonald’s Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U. S. sales growth. It didn’t. Within two weeks sales had fallen.
Using your knowledge of game theory, what do you think disrupted McDonald’s plans?
Illustrate what are the major performance goals that we set for the economy, and how do we measure the performance?
The marginal propensity to consume equals 0.3, and the marginal propensity to import is 0.1. If Americans suddenly increase their desire for European cars and the MPm raise to 0.3,
Assume the construction of the $360M stadium is to be financed entirely with debt to be repaid over 20 years.
Explain how do the relationships between Congress think about both houses also the American people function today.
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
Suppose the emarginal cost of producing the good in before question is aconstant $ 10 per unit of output . What quantity of output will the firm produce.
Alternatively, watermelon output could be increased by 500/month with an additional 2 tons of fertilizer/month. assuming the cost of water is $0.03/gallon and the fertilizer is $25/ton, is Van Farms using an optimal combination of fertilizer and w..
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
One option to balancing the budget yearly or cyclically is to create a government budget that would be balanced if economy were at potential output.
Consider the market for tuna, which is a perfectly competitive market. The long-run equilibrium price is $3 per can of tuna, and the long-run equilibrium quantity is 600 million cans per yr. Suppose the Surgeon General issues a report saying that ..
Which of the following items are included in the calculation of GNP in the UK, and which are excluded?
What is your marginal revenue and marginal cost functions? To maximize profits, how much should you produce at plant 1? At plant 2? What is the price that maximizes profits?
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