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The number of land lines for tellephones is rapidly declining as more and more people use smartphones. Using the markets for land lines and smartphones, illustrate these changes. What is causing them?
Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view?
What is the equilibrium level of income? If government purchases increase to 420, what is the new equilibrium income? What is the multiplier for government purchases?
A firm that produces and distributes electricity has mostly fixed costs. It also tends to be the only provider of electricity in its market. This is an example of pure monopoly resulting from the firm:
The engineering firm is considering to keep the crane for future projects. The cost of the crane is the one described in problem 2 (including transportation costs). Its market value at the end of year one will be $300,000 decreasing by 15% every year..
AD-AS Framework: Assume that the economy is currently in short-run equilibrium but is experiencing an inflationary gap. If you are a Classical economist and believe that the economy is self-regulating, graphically illustrate and explain how the econo..
An increase in nominal GDP accompanied by a decrease in real GDP: A. is impossible. B. implies that the price level in the economy fell. C. implies that the price level in the economy rose. D. implies that the price level in the economy remained the ..
Use the method from Section 6.4 to construct a 95% prediction interval for the 2004 unemployment rate. Is the 2004 unemployment rate in the interval?
Consider a competitive industry with several firms all of which have the same cost function, c(y) = y2 + 4 for y > 0 and c(0) = 0. The demand curve for this industry is D(p) = 50 − p, where p is the price. What is the long-run equilibrium number of f..
A 15-year annuity pays $2,200 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the an..
Defend the Process of developing a mission statement. Why do you feel that this process is necessary and complementary to strategic management? Support you answer with at least two examples.
What are the differences and similarities between a defined contribution plan and a defined benefit plan? As an employee, would you rather have a defined contribution plan or a defined benefit plan?
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