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Why are a firm's opportunity costs of production equal to its explicit costs and implicit costs?
Using the Baumol-Tobin Transactions Model, answer the following. Assume the following. The interest rate is 10%. The ATM fee (transaction cost) for withdrawing money is $2. My monthly income is $1,000. I make equal-sized cash withdrawals for each tri..
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In the mid 1980s female nurses became increasingly aware that a relatively large number of attractive job opportunities existed outside the medical service industry. In fact large number of colleges offered life and transfer credits for nurses so tha..
The marginal cost of a college education is given by the equation MC = ½ Qs + 2, where Qs represents the national student enrolment in millions each year. The demand for a college education is given by the inverse demand function P = -½ Qd + 18. In a..
Suppose that an individual has the following utility function U (x, y) = x^1/3 y^1/3, verify that this function satisfies the underlying properties (completeness, transitivity, more is preferred to less).
If overall spending rises by $300 billion and the MPC is .75, what would be the change in national output after the multiplier process is complete?
Indicate whether each of the following is counted in this year’s GDP: You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an “Investing for Dummies” book at Barnes and Noble. You purchase a historic home using the..
1) Using the concept of the differential, determine the effect on output of two additional units of labor when K = 8, N = 20
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to 0.75. Assuming that Ricardian equivalence holds true, illustrate what is the effect on equilibrium real GDP.
Combined-cycle power plants use two combustion turbines to produce electricity. Heat from the first turbine’s exhaust is captured to heat water and produce steam sent to a second steam turbine that generates additional electricity. What is the simple..
CanGo should analyze its internal strengths and weaknesses in order to properly align them with their external threats and opportunities.
Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $130,000. Time spent working: Time spent shirking:
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