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In general, the marginal cost (MC) curve is U-shaped as you learned in the lectures and the textbook. However, exception exists. Please provide at least one industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC in the industry.
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The coke machine requires exact change- Two quarters and a dime. No other combination of coins will make anything come out of the machine. Does Mike always prefer more o..
Explain how to encourage people to spend more to increase aggregate demand and create employment possibilities.
Suppose in 2012 you buy 3% coupon rate, $100 face value bond for $100 that has 2 years left till maturity. If in 2013 interest rates decrease to 1%, what will be the price of your bond and what will be your rate of return if you decide to sell it?
One explanation for China's rapid economic growth during the past several decades is its expansion of policies that encourage "technology transfer." Analyze this change using a Solow diagram. What happens to the economy over time? Draw a graph showin..
You can show that a tax on consumption is regressive using the Keynesian consumption function. Suppose C = 1000 + .5YD, and the government collects 10% of all consumption expenditures in taxes. Calculate the taxes paid by the household earning YD = 1..
Present and future values for different interest rates. Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 9%. Define present value. How are present v..
can increase the natural rate of unemployment. Is this something that policymakers should be concerned with? Explain.
the manager wins with a payoff of 20, and the auditor loses with a payoff of - 20 . If the actions don't match, the auditor wins with a payoff of 20, and the manager loses with a payoff of - 20. Diagram this game and comment on the equilibrium.
Consider the microenvironment facing a large, international airline headquartered in US (American or United Airlines) give 2 examples of important trends or events from each of 5 segments of airlines microenvironment ( macroeconomic, technological, d..
Draw a cash flow diagram for just the tax amount due to the depreciaiton, including the gain from this portion at EOY 8. Calculate the present worth of this cash flow. This is the amount gained by depreciating the property.
Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other. The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people. Markets e..
At the 0.05 level of significance, is there evidence that the population mean force is greater than 1,500 pounds? What assumption about the population distribution is needed in order to conduct the "t test" in (a)?
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