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A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers. Describe the effect of the flood on the marginal productivity of land, labor, and capital. How would the flood affect the price of inputs? Provide some examples.
In terms of trading bloc characteristics, how does the EU (European Nation) compare with the 50 States in the U.S. ?
For each of the following, is the business a price-taking producer? Explain your answers. A cappuccino café in a university town where there are dozens of very similar cappuccino cafés
a software company has developed a statistical package that can perform advanced and high level procedures as well as
Apply the concept of price elasticity to a purchasing decision you made within the past year. Give an example on how the elasticity of demand helped you determine whether a product or service was a luxury to have or a necessity.
Explain to him fully the profit-maximising/loss minimising rule within the context of a perfectly competitive market structure and how the profit-maximising/loss minimising rule may be applied under the three (3) scenarios viz. economic profit, norma..
Why is investment spending not equal saving in the circular flow?
Assuming that U =0.5, would an hour spent in the labor force searching for a job make the husband better off or worse off? Would the worker continue to be a member of the labor force under these conditions? If not, how would he be ca..
The government adopts a tax increase and cuts spending to reduce the budget deficit and the government adopts a "fiscal stimulus" by increasing its spending on infrastructure
The government is considering increasing the tax on gasoline by $3 per gallon and has asked you to determine the impact on Janet's consumer surplus. Janet spends 5% of her income on gasoline and her utility function is Cobb-Douglas.
For a normal good, explain the difference between the income effect and the substitution effect using an appropriate diagram
How does a firm then maximize their total revenue? Describe the relationship of the demand curve and total revenue curve, indicating which of the four types of market structures market power like this would occur (i.e., perfect competition, monopo..
For what values of the discount factor can grim punishment strategies support an equal division of the monopoly output?
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