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How has the demand of luxury and necessary goods changed over the past 5 years? In your opinion, why has the supply of fuel efficient vehicles increased over the past 5 years?
Suppose a pizza parlor is interested in increasing total revenue by adjusting its price. Should it raise prices or lower prices? Explain giving concrete examples.
What is economic profit? How might it differ from accounting profit? Explain why firms that are making zero economic profit are likely to continue in business.
pollution is considered by most a negative externality. some economists would like to see the costs of these burdens
As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation-unemplo..
consider the organization you selected wal-mart. integrate the concepts and operations management principles that youve
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20,000 bottles of wine were sold every week at a price of $4 per bottle. After the tax, 13,000 bottles of wine are sold every week; consumers pay $5 per bottle, ..
Find Livia's best affordable bundle of tea and coffee. How does the equilibrium condition differ from the condition we derived in lecture for the "typical" case? How much could the price of a cup of coffee risewithout harming her standard of livin..
The manager of a local monopoly estimates that the elasticity of demand for its product is equal to -3, and the marginal cost is at $20. Express the firm’s marginal revenue as a function of its price. Determine the profit-maximizing price.
Name and discuss the four major theories that address the term structure of interest rates. In your discussion, indicate the strengths and weaknesses of each of the theories and which theory or theories appear to be the best accepted as explanations ..
Has the Fed saved us from another Great Depression? Since the recession of 2007, the U. S. Federal Reserve has increased bank reserves and brought the federal funds rate (interest rate charged by banks on interbank loans) down to 0.25 %.
the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, productivity, wages and price levels.
Regardless of whether the short run or the long run is being considered, a firm should continue to operate as long as its price is greater than its average variable cost
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