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Q. A central bank finds itself in the following situation: The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing. Nevertheless, the unemployment rate is at its highest level in more than three decades, even though a recent increase in the price level may have signaled that inflation, which has been dormant for several years, could be about to take off again.
Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company.
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
The Performance by Patrice (PbP) Company purchased a Centaur Computer controlled manufacturing milling machine for $635,000 for use in its rear end manufacturing operations on November 8, 2007.
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
Can you think of circumstances in which each industry would exhibit the same capital-labor ratio in both countries.
The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is $5 a ride. Motorville taxicab drivers want to obtain government's permission.
Air transport for businesspeople and tourists
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.
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