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The deadweight loss that is associated with a monopolisticallycompetitive market is a result of
a.price falling short of marginal cost in order to increasemarket share
b.price exceeding marginal cost.
c.the firm operating in a regulated industry.
d.excessive advertising costs
Suppose that Rob and Big both raise animals and sell them. Because Rob and Big have different talents, they have varying abilities to raise these animals.
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well-known for his view that inflation is not a major problem for an economy.
Discuss the factors that determine the marginal cost of reducing crime. Discuss the factors that determine the marginal benefit of reducing crime. Would it be economically efficient to reduce the amount of crime to zero
If my optimal choice for two goods (cookies and milk) is different from two different weeks (for example, week one is C:8,M:16 and week two is C:16,M:16) BUT INCOME IS THE SAME throughout all weeks ($8).
How does your company or management go about estimating its sales? How does it determine the demand for new products so that it can make a production run?
As the number receiving the bonus vary from year to year due to the state of the economy.
Explain how do governments borrow funds to finance deficit spending. What is likely to happen to interest rates in the market.
Illustrate what is the impact of shifts of the aggregate demand curve on potential output. Illustrate your answers with a diagram.
Are better than budget deficits over the long run because unlike budget deficits, they increase saving and investment.
If Michelle devotes all her resources to growing potatoes, she can raise 200 pounts of potatoes per year. If she devotes all her resource to raising chickens she can raise 50 chickens per year. (If she apportions some resources to each
Assume that, from an initial consumer equilibrium position, price of good X falls while the price of good Y remains the same.
Consider a market for a homgeneous product with demand given by Q = 37.5 - .25P. There are two firms, each with a constant marginal cost equal to 40.
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