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The typical firm in a monopolistically competitive market does not earn long-run economic profit. Does that fact make it economically efficient? Explain why the firm will not able to earn long-run economic profit.
Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..
Roy Rogers the lead broker at C-U Broke is interested in identifying whether there is a difference
Explain in detail what happened to the global crisis of 07-09 and how it became disruptive to commercial banks, investment banks, and insurance companies. include details from the home improvement act, non-bank banks, investment banking activities, a..
In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords fr..
Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the following equations:
If market inverse demand is p(Q)=a-bQ and the firm produces according to TC(Q)=cQ+dQ2, determine the firm's optimal quantity, price and profit level. (Assume that a,b,c,d >0.) What conditions on b and d must hold in equilibrium?
Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).
By how much should the U.S. automakers adjust the price of their automobiles if they wish to increase the volume of their sales by 9.2
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
Suppose that you learn that a friend recently received a substantial inheritance. Your friend was given two choices: 1) wait 10 years and receive the inheritance or 2) receive the present value of the inheritance (using a 3% discount rate) now. Your ..
Scarecrow Manufacturing will need to begin paying a licensing fee of $7402 at the end of year 7. Scarecrow will have to pay the licensing fee for 8 years, but the fee will decrease each year by $124. How much does Scarecrow need to deposit each year ..
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