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Discuss examples from economic theory that would be estimated using the methods of simultaneous equation models
q1. total fixed cost or sunk cost is independent of quantity produced.assume a small firm has invested 10 million in
What does the change in his con- sumption reflect a substitution or an income effect.
To raise the incomes of the worlds severely poor population to the official threshold of US poverty.
Does the GDP deflator do a better job than the CPI in measuring the cost of living
If a price in a competitive market is "too high to clear the market," what does this normally mean. Assume upward-sloping supply curves.
Gasoline prices typically rise during the summer, a time of heavy tourist traffic. A “street talk” feature on a radio station sought tourist reaction to higher gasoline prices. Here was one response: “I don’t like ’em [the higher prices] much. I thin..
A firm sells cups in two fake countries, Noland and Yesville. Price discrimination is illegal in Noland and in Yesville. But, the price per cup can be different in Noland than it is in Yesville. Calculate profit maximizing values for:
A farmer just purchased a tractor for which he had to borrow $20,000. The bank, using an 8% interest rate, offered a choice of three payment plans as shown below. The farmer’s Minimum Attractive Rate of Return (MARR) is 15%. In EXCEL create a Cash Fl..
The minimum price at which a few of the producers are willing to sell a pound of cheese is $0.06, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound of cheese, producers sell 212.5 billion pounds of cheese (some to..
Compute the equilibrium level of income. Illustrate what is the level of consumption at the equilibrium level of income.
If the monopolist is operating in the inelastic range of demand,
Suppose that John takes this semester only two courses, math and economics. He allocates his studying time between the two. Let M and E stand for the number grade in math and in economics, respectively. Provide a brief economic interpretation of the ..
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