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Robert has a passion for making ice cream. Assume that ice cream parlors have a monopolistic competition market structure. Between the local Amy's, Cold Stone Creamery, Marble Slab, Ben & Jerry's and Baskin Robbins, he has an uphill battle to break into the local ice cream market.
Explain how “Black Markets” impact economic actives: Please explain in detail and use a supply and demand graph for your examples
When interest rates (IRs) decrease, how might businesses and consumers change their economic behavior? If there is a decline in the money growth, what might you expect to happen to real GDP (real output) and inflation rate?
Has the U.S. economy experienced inflation or deflation during recent recessions.
In which instance will total revenue decline?
For each of the following, state whether it is considered money in the United States. Explain why or why not.
When should this item be reordered. What could be the risk of stockout would result from a decision not to have any safety stock.
How much profit does each firm earn. Ignoring antitrust considerations, would it be profitable for your firm to merge with Fasten It If not, explain why not; if so, put together an offer that would permit you to profitably complete merger.
Compute the (point) cost elasticity of demand when cost is $700. Is demand elastic or inelastic.
Compute the equilibrium level of income. Sketch this equilibrium position using a two-dimensional graph.
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
What role do monetarists believe the government should play in the economy and why? After that has been discussed, what Keynesian and New classical economists believe about macroeconomic policy? Which role of thinking do you think you would fit in?
A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..
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