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Use this table to find opportunity cost of production for footballs and basketballs:
OH MI
FB 10/hr 18/hr
BB 20/hr 30/hr
What is the opportunity cost of OH producing a football? basketball?
What is the opportunity cost of MI producing a football? basketball?
Show that the gross increase in profits from raising price by dp equals pqt(1 - tε). Recall that t = (dp/ p). Show that the gross decrease in profits from raising price by dp equals mptqε.
q.rooster4u and clucks are huge fast food chains that sell chicken lunch specials. although both lunches include 2
The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing? How does affecting the nominal federal funds interest rate address recessionary gaps in the econo..
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $35.00 per unit for all successive units. What is the average varia..
To prevent the dollar from declining in the foreign exchange market, the central bank implements a
Suppose that annual income from a rental property is expected to start at $1,000 per year and increases at a uniform amount of $50 each year after the first year for the 10-year expected life of the property. Assume an interest rate of 10%/year. Assu..
Products become obsolete and are replaced by new goods, such as the typewriter. Draw supply and demand graphs and describe what results when this occurs.
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks’ ATM machines. What would be the f..
We discussed the possibility that a start up firm in San Francisco plans to 3-D print Rhinoceros horns that are indistinguishable from real horns. Assume they are able to produce these horns cheaply. Suppose the price elasticity of demand for heating..
Where is monetary policy stronger? In an open economy, changes in monetary policy affect both interest rates and exchange rates. Comparing the United States and Switzerland, in which country would monetary policy have a more significant effect on GDP..
What would be the new U.S. domestic price? (Hint: The difference between the domestic quantities demanded and supplied, QD - QS , is equal to the quota) How much would consumers gain and domestic producers lose? What would be the eect on deadweight l..
The BRICS (Brazil, Russia, India, China, and South Africa) nations are increasingly important in international business. Provide a comprehensive description of the economy of each of these nations and identify reasons why the BRICS countries are grow..
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