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The HHI for automobiles is 2,350, for sporting goods is 161, for batteries is 2,883, and for jewelry is 81. Which of these markets is an example of monopolistic competition?
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
Even among professional sport players, the salaries for players in some sports are generally significantly higher than the salary in some other sports. Elucidate how does this make sense using supply and demand in a market in equilibrium.
What asymetric Information can contribute to the onset of both a currency and financial crisis.
Business competition encourages efficiency of production and leads to improved product quality.
Graph the best response functions. Find the Nash Equilibrium of this game. What happens with the levels of law enforcement and crime (in Nash Equilibrium) when the cost of law enforcement c goes up?
What institutions explain why workers in some countries have more capital than workers in other countries?
what is the average product of capital and labor? what is the cost minimization choice of capital and labor if the firm decides to produce 144 units of output?
Illustrate what might cause the world interest rate to rise.
Suppose that excess reserves in the Stranda National Bank are $15,000 and the reserve requirement is 4 percent. Illustrate about the maximum amount that the money supply can be increased is.
what money growth rate should the Fed aim for to hit its inflation target in that period? If the Fed instead maintained the money growth rate from part a, what is likely to happen to inflation.
Find the profit-maximizing choice of q for this miniature farm; also compute profits that will be earned at this choice of q.
What is the primary function of banks in the macro economy? How do banks facilitate the circular flow?
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