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Demonstrate the short-run profit maximizing equilibrium graphically for a sports team facing a negatively sloped linear demand with a short-run total cost function (SRTC) of the form: SRTC = TFC + TVC = TFC + A, where TFC is total fixed cost; TVC is total variable cost; A is attendance and > 0 is a constant. On your diagram identify equilibrium attendance, the price of tickets and profit. Assume there are positive profits over some range of attendance.
Elucidate the tradeoff among current consumption and savings and how this impacts economic growth.
Explain why do people who work at investment banks earn so much. What is the justification for capital requirements imposed by bank regulators.
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
Economists have estimated the subsiquent transportation elasticities.
Explain how would each economist explain unemployment and what policies would each advocate.
Illustrate what is the difference between a movement along and shift of the demand curve and supply curve. How does a surplus or a shortage of a good or service affect the market price.
Discuss the nature of social and labor issues that domestic manufacturers will likely face with their international suppliers. Why is it usefull to understand the cultural background of a foreign supplier.
Suppose the relationships hold true and given performance below, what salary would you estimate for each player in 2006.
Given an MPC of .8, if the C+I equilibrium level of aggregate expenditure is $600 billion, then government expending of $50 billion is included, Determine new equilibrium level of aggregate expenditure?
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,
Give at least three explanations of why economic reasoning would argue that this is to be expected.
A firm is using 20 units of labour and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labour is 50 and the marginal product of capital is 40.
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