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The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis.
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
An economist is interested in studying the incomes of consumers in a particular country. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in a mean income of $15,000.
Insurance agents receive a commission on the policies they sell. Many states regulate the rates that can be charged for insurance. Would higher or lower rates increase the incomes of agents? Explain, distinguishing between the short run and the long ..
Aura has a utility function given by U(X, Y) = 4X0.5Y0.5. The current prices of X and Y are $25 and $50, respectively. Laura currently has an income of $750 to spend on X and Y.
name and briefly describe one type of policy in which intertemporal preferences over consumption or production is
A company borrows one million TL for an improvement project. The loan is to be paid off over 12 years in equal monthly instalments. The interest rate is 0.75% per month. Decide the monthly instalment? Determine the balance remaining after five years ..
Derive the FOC and SOC conditions of profit maximization for this firm. Show that SOC is satisfied (impose necessary conditions). Which plant will have a greater increase in output? Please explain why.
Wage indexation is a good mechanism to fight inflation induced by either demand or supply shocks. With high responsiveness of investment to interest rate and low sensitivity of speculative money demand to interest rate, the monetary policy is more ef..
Price discrimination occurs when a.the supply of the product is elastic b.a product's average cost is greater than its average revenue c.a product's average cost is less than its average revenue d.differences in a product's price reflect differences ..
the airline market was deeply impacted by the recession of 2008 and by the following slow recovery. describe
Compute the marginal product of labor when 9 units of labor are utilized. Assume the firm can hire labor at a wage of $10/hr and output can be sold at a price of $100 per unit. Determine the profit maximizing levels of labor and output.
The cost for operating a commercial truck is knv (1/2) where k is a constant of proportionality, v is velocity in miles per hour, and n is the trip length in miles. It is estimated that at 89 mph, the average cost of operation of $5.3 per mile.
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