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As a manager of a chain of movie theatres that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theatres. On weekends, the inverse demand functions is P=24-0.006Q; on weekdays, it is P=16-0.006Q. You acquire legal rights from movie producers to show their films at a cost of $20,000 per movie, plus a $4 "royalty" for each moviegoer entering you're your theatres (the averages moviegoer in your market teaches a movie only once). Devise a pricing strategy to maximize your firm's profits.
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
Calculate total factor productivity growth (our measure of technological progress) for each country using the growth accounting framework discussed in class.
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
Pam, having recently graduated from college, is looking to work for 2 years before she enters graduate school. She has received 2 job offers with the following salary structures:
Define and describe the difference between the absolute advantage and the comparative advantage.
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.
Suppose that American households change their tastes such that they want to save more at every level of income.
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
For this assignment you will write a 500- to 700-word memo evaluating two conflicting consultant reports. Your report should.
Write a 400- to 700-word memo to the economic adviser. Describe the change in tax revenues for the government in the new equilibrium, in both the short and longer terms.
Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
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