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What are the assumptions we need to have for our Utility Maximization model (Consumer theory)? And discuss when each assumption does not hold, how can it make the whole model collapse?
Suppose that a small nation produces mushrooms for domestic consumption also possible export.
Assume that each firm is free to set its production level, but each firm can communicate (via the business press) what they plan to do first. Using an economic model, show that it might be difficult to sustain a cooperative (high-profit) outcome. Wha..
Do you think the unemployment insurance program in the USA should be made more generous (like some European countries), or less generous? Why or why not?
Bryan is trying to decide whether he should give up his job as a software programmer and invest in a start-up. Bryan earns an annual salary of $80,000 and has a saving of $50,000. The start-up would require an initial investment of $600,000.
Show diagrammatically and algebraically cases of unitary elasticity with examples pertaining to products and services. what is the relationship between the slope and the concept of elasticity?
The production function at Jerry’s Copy Shop is q = 1000 x min(L, 3K), where q is the number of copies per hour, L is the number of workers, and K is the number of copy machines. Draw the average product of labor (APL) curve for this production funct..
Hurricane Katrina damaged a large number of oil refineries in the Gulf Coast, causing a large increase in crude oil prices (crude oil is a key input in producing gasoline). After the hurricane came, all consumers expected that the gasoline price woul..
What is the evidence of wrongdoing here How does business use politics here Is this government failure Is this market failure Who benefits and how Who loses What is the role of the media
Per capita GDP in the long run: Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes?
Assume the cost of a can was $5.10. In this case, to maximize its profit the firm illustrated in the figure above would
List the characteristics of each school of thought and draw the aggregrate demand and aggregate supply curves that demonstrate of each school of thought:
Agricultural price supports increase consumer surplus. Agricultural price supports decrease producer surplus. Agricultural price supports benefit taxpayers by reducing the price of food.
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