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Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently and some firms leave the industry and the industry returns back to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant?
Suppose that due to a political conflict inside the country, there is a risk the government will default in its debt.
Illustrate what an identification and discussion of economic issues of special concern at the present time or in the future.
Describe the benefits and risks entailed with an experimental approach to regression analysis.
The market demand and supply function for VCR movie rentals are: QD= 10 - 0.04p and QS 3.8P = 4. Calculate the equilibrium quantity and price.
South Korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. The U.S. can produce a maximum of 700 million toaster ovens or 1,000 million tons of rice per year.
Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.
Which of the subsequent represents a positive macroeconomic statement. Assume the United States can produce Toyotas at the cost.
The distribution of annual net cash flows is approximately normal. Determine the probablity that the annual net cash flows will be negative. Discuss the probability that the annual net cash flows will be less than $20,000
what is the opportunity cost of producing Toyotas in each country. Who has the comparative advantage in producing Chevrolets.
Assume that health production is subject to diminishing returns and that each unit of health care employed entails a constant rate of iatrogenic (medically caused) disease. Expalin why would the product of health function eventually bend downward.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to calculate the percentage increase in real GDP per person from 1987 to 2005.
Assume the monopoly sells its goods in two different markets esparated by some distance. The demand curve in the first market is given by Q1=55-P1,and demand curve in second market is given by Q2=70-2P2.
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