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Explain how it can be analytically sensible to have a temporary increase/decrease in technology. Explain under which conditions/assumptions this would be very difficult to assert.
Firms have excess capacity in the long run under: The firm that uses a price taker is: In the long run, which type of firm may follow "price leadership"? Under perfect competition, in the long run, firms:
Assume a downward sloping line on a graph represents the amount of money that a typical snowboarder /skiier visiting Mount Mogul ski resort on a typical day would be willing to pay for successive lift trips up the mountain if lift trips were charged ..
Suppose the central bank increases the monetary base by 1 billion euro and the money multiplier is 10. What will be the increase in total money supply? Suppose that the central bank increase the monetary base by open market operations (i.e. buying 1 ..
Rising oil prices cause airlines to adjust flight schedules. Show the effect on airline prices and quantity demanded. Show the shift of supply and/or demand curves and explain why the curve(s) shifted.
Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of $2,000 from Sandy today. What is the interest rate that Sandy is getting? Assume interest is compounded monthly.
While purchasing _____ an individual whose cost of time is low will visit a larger number of dealers compared to the individual whose cost of time is high.
Buchanan went into a store in Los Angeles. When celebrities Jennifer Lopez and Ben Affleck entered the store to shop, the manager asked Buchanan to leave, but did not give him a reason why he was asked to leave. Two Los Angeles County sheriff’s deput..
Due to the recent events, Greece is to pay a debt to Troika. The issue is, that Greek Finance Misiter is trying to re-negotiate the terms of debt payment, with the help of his knowledge in the "Game theory".
Why would the government bypass the free market in times of war? Is government rationing a better idea than rationing by price? Give reasons. How does government rationing affect the allocation of resources? Explain.
Assume the MTA’s production cost curve is given by C=1,200,000,000 + 3.5q where q denotes the number of subway trips. From past fare changes we know that a 20% drop in fares will increase the number of transit trips by 4%. Calculate the first-best tr..
Assume you invest your money is a portfolio of stocks known as the S&P 500 (i.e. a portfolio of 500 stocks). Based on historical performance, in which investment horizon would you earn the largest annualized gain (i.e. percentage gain per year or ye..
Elucidate why the boundaries of the firms that group members currently work for are dawn at their current limits, and consider whether there are opportunities to increase the returns generated for your firm's owners by a change to those vertical o..
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