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When the output is a service rather than a good, it sometimes is difficult to quantify this service. Furthermore, the quality of a service is often as important (if not more important) than the quantity. And in many cases, labor time spent with a customer is directly related to this quality of service. If this is the case, then the quantity and quality of a person’s efforts may be in conflict with each other.
Supposes airline industry consisted of only two firms: American and Texas Air Corp. Let two firms have identical cost function, C(q) = 40q. Assume that demand curve for industry is given by P=100-Q and that each firm expects or to behave as a Cou..
Explain completely how each of the following tools of monetary policy are used to increase bank reserves and the money supply.
Suppose you are in charge of a toll bridge that costs essentially nothing to operate. The demand for bridge crossings Q is given by P= 15 - 0.5Q. How many people would cross the bridge if there were no toll? What is the loss of consumer surplus assoc..
Consider a simple economy that produces two goods: apples and oranges. The following table shows the prices and quantities of the goods over a three-year period. Year Apples Oranges Price Quantity Price Quantity (Dollars per apple) (Number of apples)..
ABC Corporation's recently issued bonds paying interest semi-annually and maturing in 10 years. The face value of each bond is $1000, and 6.8% is the nominal interest rate. What is the effective interest rate an investor receives?
Which of the following best defines basic research?
Many people buy insurance against their home burning down and also purchase lottery tickets for large prizes. (The insurance and lottery tickets both have negative expected value.)
The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.
Why is the unrestricted entry of new firms to all markets necessary to assure the efficient allocation of resources in the long run?
q1. which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40
Which of the following raise the incentive for households to save?
Do you think such a policy will increase demand for electronic appliances.
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