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The situation in which the long-run average cost curve exhibits economies of scale over the entire range of output is called a "natural monopoly." Explain why, in the case of a natural monopoly, it would be cost efficient to have a single firm serve the entire market.
Increase in demand and increase in supply will lead to?:
Demand-pull inflation occurs when:
Consumers borrow money for many different reasons, including the purchase of a home, car, and appliances, to remodel, or to help pay for college. Approximately 75% of U.S. households carry some debt. What is the median amount of household debt? Provi..
The prisoner's dilemma exercise assumes
Outline some poly options for government intervention. Describe how market power prevents optimal outcomes. Explain how externalities distort market outcomes. Explain how the economic growth is measured.
Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..
Benny decides to buy living room furniture worth $3000. He plans to finance the furniture for two years. The furniture store tells him that the interest rate is only 1%/mo/mo and his monthly payment is computed as follows:
What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.
What are the major institutional changes that take place with economic development? Are these institutional changes causes or mere correlations of growth? Or is growth a cause of institutional change?
Analyze several indicators of the macroeconomic conditions in an economy, such as GDP, unemployment, CPI, and other indicators such as interest rates, income.
The effect on the budget deficit is as follows:
Jimmy has a room which overlooks, from some distance, a major league baseball stadium.
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