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A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 40 - 0.5P, and the marginal cost of production is $50.
a. Determine the optimal number of units to put in a package.
b. How much should the firm charge for this package?
Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, illustrate what will GDP be equal to next year.
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You are the manager of global opportunities for a U.S. manufacturer, who is considering in Europe expanding sales.
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Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.
Explain how new Classical and new Keynesian theory overcame their respective weaknesses/criticism as they borrowed from each other and are currently able to coexist successfully.
Under the household production model, the full cost of any activity equals:
Suppose an economy produces three goods - Economy with three goods (rice, bananas, and strawberries), Draw its PPF assuming constant opportunity costs. Then draw it with increasing opportunity costs
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Federal Express (a package company) lobbying the U.S. Department of Transportation to increase annual terminal fees at airports. Sailboat manufactures lobbying to increase the tolls on New York City’s George Washington Bridge.
The supply and demand for foreign -exchange is considered to be derived schedules. Explain and give examples.
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