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Explain why the need to have both a high aggregate demand and a high profit rate for firms to be profitable are two requirements that may stand in contradiction to each other, which in turn may lead to problems in the accumulation of capital and even crises.
On a Supply/Demand diagram show the effect on Treasury Bond markets of using these surpluses to buy back outstanding treasury securities and reduce the governments' outstanding debt.
Explain the price elasticity of demand in each market structure and its effect on pricing of its products in each market. The four market structures are monopoly, Perfect competition, oligopoly, and monopolistic competition.
There is the firm that has pricing control of its output and is capable to identify its consumers in two groups. The total quantity demanded for its output is the summation of quantity demanded by the two groups,
If inflation is expected to be 4% next year, rather than 2%, what will happen to nominal wages next year? Use your answers from parts 1 and 2 to explain how an increase in expected inflation will tend to affect the following year's actual rate of ..
Suppose the firms compete by simultaneously choosing price and fine the best response function of each firm as a function of the other firm's price. Compute the equilibrium price and quantity for each firm.
The monetized disutility of getting an MBA degree (including the actual cost) is $10,000 for a motivated worker and $20,000 for the unmotivated worker. An employer does not know workers' motivation level.
Your boss has asked you to assist him after normal work hours with shredding some documents. The division vice president announced a federal level investigation in last week's "All-call; All-attend" staff meeting. You need your job and you want to..
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%. If electricity can be purchased for costs of $0..
Consider an economy that abides by the classical mode. The production function is unspecified, but we know that the Theory of Distribution (ToD)[W/P=MPN] holds. Suppose there is adrop in the level of capital.
This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tax imposed on imports is called:
Discuss how current trends in consumerism may change the way health care professionals are paid. Do you think it will get to a point where they are only paid for performance.
Monopolies are price makers and as such should be able to set price where they will make a profit. Is this statement true? Why or why not?
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