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If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the value of homes in the entire area is cut in half. Show graphically what happens to my utility level and explain why the result is plausible. Put numbers on your graph showing the wealth and housing possibilities after the housing prices fall.
If the market-clearing price is 6, obtain the profit maximising level of output.
chistorically shifts towards a more expansionary monetary policy have often been associated with increases in real output. can an expansion in the money supply increase real output and employment
Suppose two countries, A and B, with the same production function Y = K? L 1?? . The value of ? is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Compare both economies to the Golden Rule.
Changes in real GDP serve as a better measure of the health of the economy than GDP because real GDP measures:
If Starbucks raises its price by 7 percent and McDonald’s experiences a 0.3 percent increase in demand for its coffee.
Given the recent events in the US Airways and American Airlines merger, one has to wonder, is the airline industry monopolistic? Which is worse, monopolies or competition? Describe your answer.
Explicate how the company was either helped or harmed by the intensive strategy it chose. Try to identify a way this strategy could have been improved. With you second company tell how it could benefit for the intensive strategies it has not implem..
Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7-Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?
Sir Plus has a demand function for mead that is given by the equation D ( p ) = 100 - p . If the price of mead is $85, how much is Sir Plus's net consumer's surplus
determine the possible circumstances under which the company should discontinue operations. suggest key actions that
If three-quarters of the world’s cattle are killed by a new disease
Provide two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
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