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Q1. Many small boats are made of fiberglass that is derived from crude oil. Suppose that the price of oil rises.
a. Using diagrams show what happens to the cost curves of an individual boat-making firm and to the market supply curve.
b. What happens to the profits of boat makers in short run? Illustrate what happens to the number of boat makers in the long run?
Q2. Explain how the production possibility curves can be used to analyze the fundamental economic challenges of scarcity, choice and opportunity cost. Choose two products and with the aid of graphs.
If the returns of the risky portfolio are normally distributed, what is the probability of returns being less than 29%.
What What marketing strategies should Radiance pursue in the next five years? Explain why the strategies you select would best fit the organization. in the next five years? Explain why the strategies you select would best fit the organization.
Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
Does a persistent balance of payment deficits result in a pressure to devaluate the currency.
Suppose that, instead, the market quantity demanded at a price of $1.33 is only 75,000. How many firms do you expect there to be in this industry.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
Suppose you work in a financial institution, how you would advise your clients.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Calculate the original market equilibrium price and quantity in absence of the price support policy.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
If Frank's salary as a sales manager was $70,000 instead of $100,000 would your answer be different.
Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk.
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