Reference no: EM13817216
Explain True/False. If false make the correct answer:
a. A market with barriers to entry may not be characterized by production at the minimum ecient scale in the long run. (True/False)
b. Mr. Cherry has a cost function of c(x) = x^2 + 100 if his output is x, is positive, but c(x) = 0 when x is 0. If the price of output is lower than 20, and Mr. Cherry is a competitive pro t-maximizer, he will produce zero output. (True/False)
c. The Diamond-Mortensen-Pissarides model successfully explains the phenomenon of unemployment, while competitive market models ( earlier models in our class) cannot. (True/False)
d. The existence of workers union increases the wage bargaining power of workers. The impact of union on equilibrium wage in Dimond-Mortensen-Pissarides model must be positive. (Hint: Think about the impact of union on market tightness) (True/False)
e. If a country switches from a non-golden rule saving rate to the golden rule saving rate, consumption per capita shall increase immediately. (True/False)
f. In the Solow growth model, two countries with the same production function, same saving rate, capital deprecation rate and population growth should have the same level of capital per capita. (True/False)
g. In the Malthusian model, policies that aim to control population growth will not increase consumption per capita in the long run. (True/False)
h. The failure of economic convergence in data may be explained by factors that influence total factor productivity z, according to the endogenous growth theory. (True/Fasle)
|
Gross domestic product-interest rates and employment
: Apply the IS/LM fr. amework to explain the following question. In the early 1980's to combat the recessionary forces, President Ron Reagan used expansionary fiscal policy by lowering (marginal) tax rates to combat the recession. Concurrently, Paul Vo..
|
|
Determine how the seven tools of quality can be used
: determine how the seven tools of quality can be used to improve your company. You will expand on your thoughts pertaining to the use of all seven tools.
|
|
What is the equilibrium price
: What is the equilibrium price and quantity in this market? Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market? Assume that the price floor is removed and a price ceiling is imposed at $90. ..
|
|
Production at the minimum ecient scale in the long run
: A market with barriers to entry may not be characterized by production at the minimum ecient scale in the long run. The Diamond-Mortensen-Pissarides model successfully explains the phenomenon of unemployment, while competitive market models ( earlier..
|
|
Describe the problem being faced by play around again toys
: Describe the problem being faced by Play Around Again Toys and its business impact and propose a solution to the above problem, list its objectives, and express its feasibility.
|
|
Perpetuity discounted back to the present
: What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?
|
|
Identify benefits of customer relationship management system
: Identify five benefits of customer relationship management systems. What is the most profound way in which e-commerce and the Internet has changed the relationship between companies and their customers
|
|
Enforcement costs are critical to success of environmental
: A cost-effective policy is always socially efficient. Enforcement costs are critical to the success of environmental program and should be included in the overall social costs of the program when evaluating different policy options
|