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Explain with a graph (3 points) and a verbal explanation (3 points) how a ticket price ceiling placed on a monopoly sports franchise (that does not sell out its games) may actually lower ticket prices and raise attendance. Assume that marginal costs are fixed.
What advantage does a country have if it restricts or does not allow its currency to become “convertible” – this is called a “non-convertible” currency [an example is the Chinese Yuan].
If the United States and Russia were the only two countries engage in trade, what adjustments would you predict, assuming exchange rates are freely determined by the laws of supply and demand?
Elucidate how the Solow Growth Model reacts to an increase in government spending.
Your system (Aircraft, etc.) has a reliability of .80 after operating for 1000 hours. What can you do to meet the customers' required reliability? Explain in detail.
Hamsung , Inc., a manufacturer of electronic appliances, estimated the unit cost of one of its products as follows: Material costs $ 63 Labor costs $ 24 Overhead $110 $197 The overhead cost is made up of $50 per unit variable costs and $60 per unit f..
Consider the aggregate demand and aggregate supply model with three ranges. In which range will an increase in aggregate demand cause an output and employment increase without causing inflation?
If the Fed intends to decrease the money supply, what tools can be used? Briefly explain how each tool should be implemented.
Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
If you produce plastic spoons and one of the products (like petroleum) required to produce those spoons decreases in price, does the market demand for plastic spoons change? Does market demand for competitors with similar items but made from differen..
Gator Fabrics Inc. currently has zero debt (i.e., wd = 0). It is a zero growth company, and additional firm data are shown below. Now the company is considering using some debt, moving to the new capital structure indicated below. If this plan were c..
Suppose Ecuador and Hongkong negotiate a voluntary export agreement in which Hongkong imposes on its exporters a quota that limits shipments to Ecuador to 40 computers Assume Taiwan does not tske advantage of this situation by exporting computers to ..
Which of the following is an example of a Federal Reserve operating target?
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