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two days ago you bought a used car from a former roommate for 3,000 dollars. The sale is final. Today it broke down. You find that the car requires repairs of 1,200 dollars in order to get it to run. Once it is repaired, it will definitely not break down again. Assuming that the car is worth 3,500 dollars after repairs, should you get it fixed?
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
Illustrate what is the basic objective of monetary policy. What are the major strengths of the monetary policy. Why is monetary policy easier to conduct than fiscal policy in a highly divided national political environment.
Suppose nominal GDP in 2002 was $100 billion and in 2003 it was $260 billion. The general price index in 2002 was 100 and in 2003 it was 180. Between 2002 and 2003 the real GDP rose by:
In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of $21 to an average of $15.
the technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your can and automatically charges you for the use of the road. Explain how would this affect bottlenecks and..
Assumes that wheat producers lobby the government for a price floor also receive one.
What is the expected value and standard deviation of the safest investment strategy you can make by this means. What is the highest expected value you can achieve.
if the demand for labor is elastic because the demand for labor will decrease more when you have elastic demand than if demand were inelastic.
Illustrate what do your results tell you about the relative desirability of perfect competition versus monopoly in the presence of externalities.
Illustrate what are the firms ATC per unit at these three levels of production. If every firm in this industry has the similar cost structure, is the industry in long-run competitive equilibrium.
A lump sum of $5.2 million in the first year. Assume the market interest rate will be 6% for all these years.
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