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1. How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.
2. Does economic growth eliminate scarcity? Why
What does the economy look like when the economy is in an unemployment gap? What type of unemployment rate is it compared to the Natural Rate of unemployment? What about inflation?
Based on demand function from previous question, when price of good is $50, how many units of good are demanded.
what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
A glass factory sold $1,000,000 of glass to an automobile factory. An automobile factory sold $10,000,000 in automobiles to final consumers. Given these events, calculate the GDP of Autoland using a. the final goods approach. b. the value-add..
Describe the difference between marginal cost and average total cost. Why are both of these cost important to a profit-maximizing firm?
A firm has the following short-run production function (where L = Labor and Q = Output): Suppose that the output can be sold for $10 per unit. Further assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit. Dete..
Assume that the demand for cigarettes is perfectly inelastic, whereas the elasticity of supply is one. The equilibrium price is $1 a packet and the equilibrium quantity is 1000 packets a week..
Suppose an economy that is initially at full employment faces a substantial fall in exports.
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $4, $5. Suppose you have $8.0 at 1% and can borrow at 9%. What is the incremental cost of funds on asset B?
Consider a homogeneous duopoly market where two Örms compete in prices (Bertrand). Demand is given by D(p) = 16 2p. There are no production costs.
What is a perfect (pure) price competition model and what are its assumptions? Explain in detail how the price competition model is supposed to work, its process and the outcome (this includes many components relating to the quality of goods, the typ..
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