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Suppose the economy is slumping into recession and needs a fiscal policy boost. Voters, however, are opposed to larger federal deficits. What would policy-makers do?
(a) What is mean by that Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly.(b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market
What could a president or other government policymaker do to raise a contry's standard of living.
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university.
The XYZ Co. sells widgets for $10 each. At that price it sells 200 per week. When it reduces its price of a widget to $9, it sells 250 per week. Calculate the price elasticity of demand. Is it elastic, inelastic, or unitary?
Flavortech Corporation expects EBIT of $2,000,000 for the current year. The firm's capital structure consists of 40% debt and 60% equity, and its marginal tax rate is 40%.
Assume that a price support system for cotton requires the federal government to pay farmers $3,000 for each acre to not plant cotton. How would you shift either the supply or demand curve for cotton to describe the effect of this action? In your a..
For each of the following pairs of goods, would you expect the cross-elasticity of demand to be positive or negative? Large (in absolute value) or small? Defend your answers:
Assume a indiidual has $8 to spend only on apples and bananas.
Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line 'technology' and (2) the economy enters a 'recession' (which decreases 'income' of consumers). An economist would predict with certainty that equilibri..
Determine which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?
Use both offer curves and a two by two payoff matrix, estimate the optimal foreign economic policy of a hegemon.
Write an equation that summarizes the cost function for her operation, as well as equations that summarize the marginal, average variable, average fixed, and average total costs of selling fresh drinking water at the kiosk.
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