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Identify the main instruments that governments use to constrain/restrict the behavior of economic agents (consumers and producers). Use a simple model to explain how each is expected to affect behavior.
Suppose that the price of pizza falls from AED 25 to AED 15 per pizza. The quantity demanded increases from 0 to 20 pizzas. The average price is AED 20 per pizza. Calculate the price Elasticity of Demand.
You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($200 million last year) and a low marginal cost of producing the product ($0.45 per pill), your company has yet to show ..
An individual derives utility from consumption goods, X, and leisure time, N, to maximize the daily utility level, u = XN. Outside income per day is $m and the price of consumption goods is $p. How many units of consumption goods will be produced?
A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $38 and the risk-free rate of interest is 8% per annum with continuous compounding. a) What are the forward price and the initial value of the for..
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
given the tc300004q 0.0004q2 with a constant whole price 20clock. what is the breakeven quantity the profit maximizing
In August 2008, Mexican Pesos ere trading at $0.10 on the foreign exchange market. By November, they were down to $0.07, a decline of 30%. Explain the fall in the price of a Peso using supply and demand curves. In words, explain the rise in the price..
Can you provide any examples of Illustrate what kind of equality could be made to offset these increased society costs
if they use a regulation should they allow for pollution permits? explain the benefits and detriments of each form of control. what would you recommend?
What is the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates? (Macro economics, course number AB204)
The labor supply function is given by N=1000+12w and labor demand is N=2000-8w. Find the equilibrium level of employment and wage. Given existing technology and the capital stock, output is given by the function Y=100N. Does the function exhibit dimi..
What are the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies between the foreign country and the United States?
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