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1. # of sellers, # of buyers
2. entry and exit conditions
3. product characteristics
4. short run P&Q determinations and the resulting 3 possibilities for excess profit (graphs are required)
5. which one of the above depicted SR (PIE) possibilities is the most typical in the LR? why?
Explain how a firm's production function is related to its marginal product of labor, how a firm's marginal product of labor is related to the value of its marginal product.
How did the 1971 law that banned cigarette advertising on television solve the prisoners' dilemma for cigarett producera (a)What is the meaing of tit-for-tat in game theory (b) What conditions are usually required for tit-for-tate strategy to be the ..
A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. Briefly explain the short-run adjustments for the market and the firm to a decrease in consumer incomes.
John Bros, owner of a spark plug manufacturing facility, is looking to expand his production capacity. He is considering three locations A, B, and C for the constructing of a new plant. The company wishes to find the most economical location for a..
Research the elasticity of beef and eggs in regards to price changes. Explain how do supply, demand, and price controls interact to affect equilibrium price of eggs
Illustrate what is the discount rate in the banking system and explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
Suppose there are only two firms. It is better to be a quantity leader in a Stackelberg model than a member of a cartel in a one shot market. Use a graph if you want.
Discuss the difference among inflationary gap and deflationary gap.
What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?
Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years).
The classical approach to macroeconomics assumes that A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets.
Why it is important that prices are flexible in our economy? What happens if the government controlled the level of prices, how would this influence prices? How can you relate the law of demand to a recent purchase that you have had to make?
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