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The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, How will a successful campaign that decreases the supply of drugs influence the price of drugs and the amount spent on them?
Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.
A perfect competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q^2-What is the lowest price at which the firm can break even?
A firm has estimated the following demand function for its product: Calculate the advertising elasticity of demand and explain its meaning.
Differences between Classical and Keynesian views of economy. Explain the situations that led to development and dissemination of Keynesian economic theories.
A contractor submits a bid on a project, for which more research and development work needs to be done. It is estimated that the total cost of satisfying the project specifications will be $20 million, plus the cost of the further research and dev..
continue to produce the level of output at which marginal revenue equals marginal cost. increase output to minimize its losses. reduce output to the level at which price equals average variable cost to minimize its losses. shut down to minimize it..
As sitting in your office one evening, you begin to think about some of the key microeconomic messages you need to communicate to the Board.
A researcher has data on accounting profits, HHI, and different conditions of entry for different Canadian industries for the year 2009. Using this cross sectional data set, the researcher has estimated the coefficients of a model.
Suppose the government cuts its purchases by $120 billion. As a result, budget deficit is reduced by $40 billion, private domestic decreases by $10 billion,
Flavortech Corporation expects EBIT of $2,000,000 for the current year. The firm's capital structure consists of 40% debt and 60% equity, and its marginal tax rate is 40%.
Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.
List and describe the fundamental characteristics of a perfectly competitive market. B) Should a competitive firm ever produce when it is earning negative economics profit Explain why or why not.
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