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Assume, in an industry where firms are making an economic profit, the creation of an internet platform has broken down all entry barriers and resulted in a huge increase in the number of firms entering the industry. What will be the implication on profit to the existing firms in this industry? Use graphical demand and supply analysis to support your explanation.
a. Evaluate the change in costs over the period in real terms, first in 2011 dollars and then in 2012 dollars
Illustrate what are the major differences among an open and closed economy
1) Write a paper analyzing different approaches that might be used by Keynesian theorists and 2) monetary theorists to promote long-run macroeconomic stability.
1. calculate ae given the information below and completely fill in the table.2. where is equilibrium in this economy
The fear of unwanted price wars may explain why many firms are reluctant and suppose that a new machine tool having a useful life of only one year costs $80,000. Exam: 050474RR - MACROECONOMIC MODELS AND FISCAL POLICY
"Suppose you got a gift certificate to attend a concert in town. The price of admission is $40. You would be willing to pay $30 to see the concernt. Your neighbor offered to pay you $20 for the ticket. Instead, you gave it to me as a gift. How muc..
a) What is firm A Marginal cost curve? b) Firm A charges same as firm B = $30,000. What is the Marginal Revenue function of firm A. c) Given b, what is output produced and total profit from firm A (assume they are maximizing profit)
An engineer considering for retirement decides that she wants to have income of $100,000 per year for 20 years with the first withdrawal starting 30 year from now.
A piece of equipment is bought for $70,000 and is depreciate, with a salvage value of $2,000. At the end of 5 years the equipment was sold for $35,000. If the company is in the 36% tax bracket, compute the taxes owed after selling this equipment i..
The Impact of Government Debt on Interest Rates - What is the cross country evidence in favor of higher government debt resulting in higher interest rates
Suppose Panama produces only two goods, bananas and hats. If Panama has a comparative advantage in bananas, a move toward free trade will, a. harm hat workers, benefit banana workers, but benefit the nation as a whole. b. harm hat workers, harm bana..
assume a perfectly competitive firm is currently producing 5000 units of output and is earning 15000 in total revenue.
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