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The challenge that our economy is going to be facing is that we need to make decisions based on these fluctuations. Do you think our economy does a good job of evaluating these changes in output or not?
Describe a market situation in which the operating company faces economic difficulties and the need to cut costs. What cost cutting strategies might the operating company use to remain profitable? What would be the benefits and drawbacks of each?
how much does the total amount of deposits in the banking system increase? By how much does the money supply increase. In the u.s. today, money includes which of the following items federal reserve bank notes in citibank's cash machines.
What is the private value of innovation to the innovating firm? What if the innovation were drastic so that the innovating firm exists as a monopoly after the innovation?
The Short Run total cost curve of a firm in a hypothetical market is given by. What is the shut down price? What is the break-even point of the firm? What is the equation for the firm’s short run supply schedule?
Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds.
Discuss the two major economic worries faced by American politicians, unemployment and inflation, and the options available to address them.
How does the analysis of risk aversion change when one allows for alternative models of decision-making then expected utility? How does subjective expected utility theory differ from expected utility theory? How might one elicit a subjective probabil..
In 1796, Gottfried Christoph Hartel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated costs functions to make productions decisions.
The term tax incidence refers to...
Two firms, each in a different country, sell homogeneous output in a third country. Government 1 subsidizes its domestic firm by s per unit. The other government intervention, the market has a Nash-Cournot equilibrium. Show that Government 1's optima..
The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. Which of the following would ..
Explain which of the following transactions would be directly counted in 2015’s GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export. If the transaction is not included in 2015’s G..
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