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In the neoclassical model of business fixed investment, under what conditions will firms find it profitable to add to their capital stock?
Why is this statement wrong: "Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple 10-digit electronic calculator sold for $120. Lower prices di..
Assume that there are three types of teams in Major League Baseball: large market, medium market and small market. Each of these types has ten teams for a total of 30 teams. The demand function for each type of team is: What is the price Major League..
Explain the mistake in the following statement: "consumers make certain the utility they are getting from all different consumption goods is equal."
Using an indifference curve mapping, derive a compensated demand curve. When considering the welfare implications of a price change, why should an economist technically measure consumer surplus as the area under the compensating demand curve, rather ..
After reading the article about eliminating the middleman and War by Parker, discuss how this allows higher profit. How is this helping people get affordable glasses? Is anyone else doing this? Do you think this is a good business model? Why or Why n..
Explain a situation in which the outcomes of classroom experiments deviated from standard economics theory. What insights were learned from these outcomes and how are they incorporated into the standard theory they attempt to model?
Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus or at university events. What is the beneficiaries of this deal.
Compare and contrast the four market structure models: Monopoly, Oligopoly, Monopolistic Competition, and Perfect Competition—including, but not limited to, assumptions/characteristics of each model, profit maximizing price/output combinations, short..
Explain what is meant by "first-mover" advantage and how each of these firms was able to control a relatively large share of their respective markets.
Demonstrate how growth accounting could be utilized to learn the value of g. Analyze the effects of an unanticipated permanent reduction in g on the real income rate also the real interest rate.
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage in..
How many employees (the minimum) must be covered by Cheque. Company's defined benefit pension plan for the plan to conform with ERISA?
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