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The nation of Spendistan has a much higher marginal propensity to consume than does the nation of Savistan. A global financial crisis has caused both nations to fall into a recession and both nations have just enacted $30 Billion rise in Government Spending on highway repairs. Comparing the two nations,
A piano manufacturer has a daily fixed cost of $1,200 and a marginal cost of $1,500 per piano. Find the cost C(x) of manufacturing x pianos in one day. Hint: A linear cost function, C(x) = mx + b. Use your function to answer parts b to e. On a give..
the comnpany offered to pay his debts in one lump sum if he would pay the company $308.29 per month for the next 36 months. What monthly rate on interest is the loan company charging on his transaction?
Compute various indicators of the state of the labour market using the following information. Please show all of your working. If you do not, you will receive zero marks for the question(s).
Caught up in broad social and economic disaster that swept the Mediterranean basin during the twelfth century BCE, what seems to have happened to the civilization of people.
Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the entry-deterrent threat by firm A to lower the price not credible to firm B? (c) What could firm A do to make its threat credible without building exces..
PiR8 Systems has borrowed a sum of $2.5M from a bank at interest rate of 4.5%. The company also borrowed $0.5M from other sources at a interest rate of 4%. Additionally the owners have invested $2.5M in the business with the intention of earning 15% ..
The economic principle that consumers are willing to consume more of a good when price is low is depicted by the:
q. suppose a government has no debt and a balanced budget. suddenly it decides to spend 1 trillion while raising only
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned that your rival is retiring and closing his station in two weeks...
A person has a choice between only the following bundles: (1,1), (2,2) (3,3) (1,2) (1,3) (3,2) (3,1) (2,1) (2,3). The person’s preferences are that they prefer the bundle that has a bigger number when the x coordinate is divided by the y coordinate. ..
We have spent so much on our present office that we cannot afford to waste this money by moving now." Estimate the second partner's advice not to move downtown.
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