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In perfect competition if firms produce where P=MC they ensure ________ because the social benefits of production as measured by the price that people are willing to pay, are in balance with the ________ to society of that production.
economic efficiency : total revenues
allocative efficiency : costs
economic efficiency : marginal revenues
If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, in order to sell the house and move to another city, the homeowners would be required at closing to pay
What are the key management assertions related to equity? What are the most important assertions related equity? How will auditors test these assertions?
Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply. What was Diane's economic profit.
For a normal good, the income and substitution effects
The year is 2009 and you have just been elected President of the U.S. The economy is in crisis due to problems in the financial sector and housing markets. Unemployment is 9.5% and rising and the BEA reports GDP has decreased over the last two quarte..
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $3, $3. Suppose you have $4 at 1% and can borrow at 12%. Which assets do buy?
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $60,000 and her store made $130,000 in profits (not counting payment to her top manager). She suspected t..
The constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy.
Assume that major wheat producers in the world increased their land under wheat by 30 percent. Graphically show the effect of increase in land under wheat on the grain market.
Suppose that the government imposes a temporary tari? on all imports, which makes imports more expensive relative to domestic residents (reducing the trade balance for any fixed level of the real exchange rate). Discuss the implications of this polic..
If countries are first ranked by level or real GDP per capita, and then by the value of the Human Development Index, would you expect the ranking of countries to be similar or different? What are the short-run and long-run effects on an economy of a ..
By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.
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