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A firms labor demand and labor supply equations are shown below.
Labor demand equation: Ld = 40- 2(w)
Labor supply equation: Ls = 20 + 3(w), where w is the wage per hour worked.
Instructions: Round your answers to the nearest whole number.
a. The equilibrium wage is $______ and the equilibrium quantity of labor employed is______ people.
What happens in the market for a drug once the patent expires? Why?
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Describe the process by which the competitive market establishes a price at which all firms are just earning normal profits.
An export subsidy has the opposite effect on terms of trade to the effect of an import tariff. Domestically a tariff will raise the price of the import good, deteriorating the domestic terms of trade.
the new business enviroment how is the organization dealing with any of the following drivers of the new business
"Some economists worry that the aging populations of industrial countries are going to start running down their savings just when the investment appetite of emerging economies is growing" (The Economist, May 6, 1995)
Gamma Corporation, one of the firms that retains you as a financial analyst, is considering buying out Beta Corporation, a small manufacturing firm that is now barely operating at a profit.
Presume, in an effort to increase tax revenue, the federal government imposes a 25 percent tax on cheques written on deposits. Describe thoroughly utilizing the money multiplier how the cheque tax will affect the money supply.
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Daily commuter demand is variable, yet stable and known. Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. How would you price these two events differently
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