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1. Explain why the following statement is true: It is possible for average variable cost (AVC) to rise while average total cost (ATC) declines.
2. Why do business firms tend to be inefficient at very low and very high levels of production? Address both fixed and variable costs.
Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
Suppose that Hump Ridge Company produces and sells two products, x and z, and that its total cost is given by-What does λ equal? What does it mean?
Compute total revenue, marginal revenue, total cost and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?
President Obama pushed his massive fiscal stimulus package of $787 through the Congress and later passed by the House and Senate, whose centerpiece was spending most of this stimulus funds
What is the expenditure multiplier-explain this briefly? What does it multiply? When an economy is in equilibrium what the size of unplanned inventories is?
Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
What takes place to the equilibrium price and quantity of ice cream in response to each of the following? Describe your answers.
Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?
Draw a graph of the Batman family's supply of loanable funds curve fro 1999. Show the influence of this change on the Batman's supply of loanable funds curve.
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
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