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Which of the following is a necessary condition for perfect competition? A) A small number of firms control a large share of the total market. B) Movement into and out of the market is limited. C) Firms produce a standardized product. D) Extensive advertising is used to promote the firm's product.
As you know, airlines practice price discrimination by charging leisure and business travelers with different prices. They could do so because of the different elasticity of demand between these two groups of travelers. Different customers pay varyin..
In the Adirondacks there used to be a number of paper mills, every one of them has closed down. However, a group of entrepreneurs is going to refit one of the old paper mills and reopen it. They are planning on employing 5,000 workers in a town of 10..
A student intern discovers the following about the demand by local businesses for attendance at a pro sports team's games: PB = $140 – 4 AB where PB is the ticket price paid by businesses, measured in dollars, and AB is their attendance measured in t..
What does the Federal Reserve do to stimulate the economy? What does the Federal Reserve do to contract the economy? What motivates policymakers to stimulate the economy or contract the economy?
Consider a monopoly with a production function given by q = f(x) = √x and a fixed cost of $1. The input price is $0.50. The monopolist sells her product in a market that has ten consumers. Let p denote the unit price of the good. Find the profit-maxi..
Models such as moving average, exponential smoothing, and linear trend use only:
GDP in an economy is $3205 billion. Consumer expenditures are $2417 billion, government purchases are $543 billion, and gross investment is $303 billion. Net exports are:
Unlike the physical supply chain, inefficiencies characterize the financial supply chains of most companies.
How do we graphically represent the utility maximizing bundle that consumers can afford?
The steady state of the Solow growth model with exogenous technological progress and Cobb-Douoglas technology predicts that the real rental rate (ie: the price) of capital will not exhibit long run growth if the capital input market clearing conditio..
In the Classical growth model:
Suppose you explain the concept of an inflation tax to a friend. You correctly tell them, "When a government prints money to cover its expenditures instead of taxing and borrowing, it causes inflation. An inflation tax is simply the erosion of the va..
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