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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?
If some firms leave a monopolistically competitive industry, the demand curves of the remaining firms will: The dominant strategy equilibrium in the prisoner's dilemma is:
Labor market ex for monopsonist. Labor Demand is Qd= 220-5w. Labor supply is Qs=-45+8w. Union has no market power, and so league acts as a monoposonsit facing marginal expenditure curve. ME=Q/4+5.624 (This is the derivative of (labor supply curve sol..
We can see that aid to Africa has increased significantly over the last 40 years and that incomes in Africa have stagnated. Explain why these two facts do not constitute proof that aid is not effective in increasing incomes in Africa.
A bond pays semi annual interest payments of $42.50. What is the coupon rate if the par value is $1,000? You are buying a bond at a quoted price of $892. The bond has a 7.5 percent coupon and pays interest semi annually on February 1 and August 1. Wh..
Define the following concepts and describe their relationship to one another:
It is estimated that the annual sales of an energy saving device will be 20,000 the first year and increase by 10,000 per year until 50,000 units are sold during the fourth year. Proposal A is to purchase manufacturing equipment costing $120,000 with..
Graph the ppf. calculate the oppurtunity cost of guns in terms of butter and that of butter in terms of guns. If you observed this economy producing 700 guns and 3 tons of butter, what would you conclued about how this economy is solving the 'how' pr..
Which of the following is an assumption of the monopoly model?
What will happen if the growth rate of the money supply exceeds the growth rate of GDP? What will happen if the growth rate of the money supply falls short of the growth rate of GDP? What will happen if the velocity of the money supply decreases?
In an effort to reduce education expenditures, Delware shuts down two of the five colleges that train nurses. Using the traditional supply and demand model, discuss the effects of the budget cut on three markets: the markets for nurse schooling (tuit..
Money Definitions. To answer the following questions, refer to the money definitions and relationships 1: Total currency = (currency in circulation) + (vault cash) 2. Total reserves = (vault cash) + (reserve deposits). Suppose that banks have a total..
In the book, "Confessions of an Economic Hitman", How did the OPEC Oil Embargo of 1973 change the way the U.S. government does business in the Middle East? What were the goals and strategies used to ensure that an event like the embargo would never h..
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