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Consider two firms X and Y produce identically tasting cold drinks.In order to increase the demand for its cold drink, firm Xincreases its advertisement outlay. However the advertisingdoesn’t increase its demand in the long run. Explain why this must be the case.
Elucidate the elasticity of demand given the price and income combination.
According to some translations, Nobel laureate Albert Einstein once said, " God does not play dice with the universe." Does this mean that a profit-maximizing firm would never use something like dice or a roulette wheel to help shape its pricing d..
Illustrate what were some changes of the demand also supply fconditions that lead to the housing market bubble and collapse
GDP is the total value of all final goods and services produced in within a country in a given year. Do you think the GDP is a good indicator of economic well-being. Illustrate what other factors do you think contribute to a good standard of living.
A machine with a ten year life is to be depreciated by the MACRS method. The machine has a 1st cost of $30,000 with a $5,000 salvage value. It's yearly operating cost is $7,000 per year.
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
Give and discuss (1) some examples of goods whose production creates detrimental externalities, (2)some examples of goods whose production creates beneficial externalities, and (3) some examples of the free rider problem.
Illustrate what are the three major categories of expenditures for the federal government. Explain whether or not we should be concerned with net interest outlays and national debt.
Tariff and non tariff barriers exist in all nations, either independently or as part of a multicountry integrated economy. Present arguments that defend the use of trade barriers and arguments against the use of trade barriers.
GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP.
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development. Illustrate what condition would encourage research and development in..
We often look at gross domestic product and how it relates to a recession. In the U.S. we recently went through an economic decline. Do you find people consume less overall when their is a downturn economy?
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