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1. When the demand line is perfectly elastic, there is no deadweight loss after taxation.
2. Firms must not operate if the market price is less than ‘break-even' price.
3. Price floor would lead to surplus in the market.
4. When the supply line is perfectly inelastic, there is no deadweight loss after subsidy.
5. A positive externality for individual X can not be a negative externality for individual Y.
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
In late June the Fed lowered its federal funds rate target from 1.25 percent to 1 percent. However between mid June and early August the yield on longer term 10 year Treasury notes rose from 3.1% to over 4.3%.
Explain how do the principles of microeconomics which you have leaned in this course apply to other nations.
Elucidate what is the impact of a trade surplus. What is the impact of a trade deficit? How do trade deficits and trade surpluses affect the firm you work for.
Illustrate fiscal policies also monetary policies which would be appropriate at this time.
You can lease the similar piece of equipment, delivered and installed, for an all-in cost of $65,000 per year, for three years, payable at the beginning of each year.
Describe the cutthroat competitors reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.
If the total expense schedule for a perfectly competitive firm is and if market price is $60, how many units of putput will the company produce?
Suppose Harrod-Damar model with fixed capital-output ratio. Suppose that the country saves 20 percent of its income and has a capital or output ratio of 4.
Kimberly MacKenzie, president of Kim's Clothes Corporation, a medium-sized manufacturer of women's casual clothing, is worried.
I have a website where I offer cash rebates for purchasing stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate.
Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?
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