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To promote competition and consumer welfare, the Federal Trade Commission requires firms to adver- tise truthfully. How does truth in advertising promote competition? Why would a market be less competitive if firms advertised deceptively?
Presume a firm sells to senior citizens and others at a single price of $10. At this price it sells 10,000 units total (2,000 to seniors; 8,000 to others). It estimates that at the $10 price, seniors have an elasticity of -3 while others have an elas..
1 you are a factory owner who has just purchased a new machine for 5000. over the next year it would have cost you 1000
Discuss the effect the credit market crisis in the United States in 2008 had in the market for existing single-family homes. Assuming the demand for existing single-family homes is relatively inelastic, what is likely to happen to the total revenues ..
What argument would trade economists make against seeing these wage cuts as a reason to block outsourcing of computer programming?
How much labour should be allocated to plant Alpha and to plant Beta? And, at the best allocation, what is the output produced?
A family needs a $50,000 down payment for the purchase of a house. In order to reach their $50,000 target, how much does the family need to contribute monthly to a savings fund, over 10 years, that pays 3.5 % interest compounded quarterly?
Write out the optimization problem, including any relevant constraints and poroduce the Euler equation for this problem - Give as much of the solution as you can obtain, and provide an intuitive explanation of your results.
1. if an economist says the higher the price of oranges the fewer oranges individuals will buy ceteris paribus this
One way to view the law of diminishing marginal productivity is to say that, The concept of derived demand can best be illustrated by the statement:
examinations of possible sequences present perception inside the rudiments of economic reasoning, in conjunction with the presentation of major economic perceptions.
Determine how velocity is affected by an increase in real income (Y), an increase in the nominal interest rate, and an increase in the price level.
Calculate the expected market price.
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