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the fully allocated cost of a product is $10. If the price elasticity of demand for the product is -2, then the firms optimal markup is
a. 10%
b. 100%
c. 200%
d. 300%
Over the business cycle, real GDP tends to increase during the expansion and decrease during the contraction. Can you name some other macro variables that fluctuate over the business cycle like GDP does?
The toll-bridge operator is considering an increase in the toll to $7.At this higher price, how many people would cross the bridge? Would the toll-bridge revenue increase or decrease?
COUNTRY ANALYSIS 1. Describe the population trends. 2. What is the gross national product and its' trend 3. What are the key imports and exports 4. What are the country's major industries. 5. Describe the political system and legal environment. Do th..
Jamaica is the 4th largest island nation of the Greater Antilles.It is situated in the Caribbean Sea south of Cuba, and west of Hispaniola, the island containing the nation-states of Haiti and the Dominican Republic. Jamaica is the 5th largest isl..
Assuming that banks used all their excess reserves to support an increase in the volume of bank lending, by how much would bank lending expand if the Fed undertook the policy action that was your answer to the question above.
Economists also use the principle of comparative advantage to advocate free trade among countries as a better policy. Trade is not based on absolute advantages countries have but the relative (comparative) advantage. 1. Does free trade contribu..
What is the difference between substitutes and complements? Indicate two goods that are substitutes for each other. Indicate two goods that are complements.
Explain two different markets where has been a market disequilibrium. That is, there is a shortage or a surplus. Briefly explain the supply and demand curve.
If we compare the betas of various investment opportunities, why do the assets that have higher betas also have higher average expected rates of return?
Analyse the determination of the appropriate amount of undeveloped land along this river as an externality and public goods problem
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 150 + 28Q – 5Q2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) = 8.)
discuss the various ways governments can handle externalities such as noise from a local airport or a barking dog or
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