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If employment in a country decreases when the economic activities of that nation declines, the relationship between employment and economic activities can be considered as which of the following?
Positive or direct relationship
Negative or inverse relationship
Neutral or no relationship
Initially positive but eventually negative relationship
Suppose that the cost function of a firm is C(q) = 10 + 3q + 0.1q 2 and that it operates under perfect competition. If p = 4, find the optimal quantity, the costs, the revenue and the profits. Find the price at which the firm makes zero profits, that..
Explain why government deficits in more troubled countries, such as Zimbabwe or Iran, tend to produce more inflation than deficits in less-troubled countries, such as Japan or United States.
decides not to play by the rules of the game. Then illustrate what could the final equilibrium position be.
Consider a market with a demand curve of P=24-2Q and a supply curve of P=3+Q. Calculate Consumer Surplus. Consider a market with a demand curve of P=24-2Q and a supply curve of P=3+Q. Calculate Total Surplus. Consider a market with a demand curve of ..
Explain how the adverse inflation shock affects the AS curve. (ii) Discuss, using AD-AS diagram, what choices the Fed now must make regarding monetary policy.
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
The publisher of a new book figures fixed cost at $92,000 and variable cost at $2.10 for each book produced. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?
Currently, the expectation is that the Federal Reserve will try to increase interest rates sometime later this year, while the European Central Bank will try to maintain low interest rates. What is the corresponding expectation of the future trajecto..
Think of one situation in which the Government is actively involved with the purpose of changing an outcome in the appropriate market. Do you agree that the Government should be involved? Why or why not?
What is the cost function associated with producing y units of output? Assume now that input prices are (w1,w2). What is the cost function associated with producing y units of output?
sticky prices also income are often cited as an example of market inefficiencies during recession lay off workers yet many of these firms are related to begin hiring even as the economic situation improved.
Consumers buy from the lowest price firm, and the highest price firm sells nothing. If the firms pick the same price, they split the market demand equally.
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