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Assume that the MPC=0.6 for every consumer in the economy. You have just been paid $20000 to produce a research report for the Department of Commerce. How this action by the government will affect your spending plans? What would be the total effect on the economy of this action? (Assume that t=0, m=0). What would be the total effect if t=0.2 and m=0.08.
What desire to purchase does not vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iPhone.
q1. a firm in a purely competitive industry is currently producing 1000 units every day at a total of 450. if the firm
Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the immediate effect of each of the following transactions on commercial bank reserves. Assume that the initial reserve ratio is 20 percent. Federal Reserve Banks purchase $2..
The Federal Trade Commission requires that firms advertise truthfully. Why does this requirement promote competition? Would firms be better or worse off if the Federal Trade Commission adopted a "let the buyer beware" policy?
q1. a. distinguish between monetary policy instruments and monetary policy tools.b. describe any two key tools of
What does customer loyalty mean to you? Compare and contrast customer loyalty and customer satisfaction. Think back to your own personal experiences with customer loyalty. Explain one situation that really stands out. What makes you loyal to that com..
Suppose that C (q) = 10q + 3,500,000 (for which MC (q) = 10 ). Use Inverse Elasticity Pricing Rule in order to determine profit maximizing price and level of output for this firm. Is this firm able to earn a positive profit.
A number of Latin American nations export coffee and import other goods. A long-term drought now reduces coffee production in the countries of this region. Assume that they remain exporters of coffee. Explain why the long-term drought in the region m..
Regarding combined returns on a merger, what does the efficiency theory state, and what do empirical studies suggest? Regarding the same issue, what does the entrenchment theory state, and what do empirical studies suggest?
Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and net annual revenue. Use a MARR of 4% per year and a 5-year study period.
"In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The WSJ rai..
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. What is the average varia..
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