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What are major reasons for government involvement in a market economy such as the software industry (e.g. externalities, increasing returns to scale (failure of perfect competition), absence of futures and insurance markets, failure to attain full equilibrium, merit wants, and distribution).
Suppose the company wants to set its price equal to full cost plus 30 percent. To determine cost, the company must estimate the number of units it will produce and sell in a year.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
Illustrate what does the report say about the corporation view of future business challenges and the market in which it operates.
How will the programs proposed affect future growth possibilities for the economy (how will they effect the PPF and long run aggregate supply)?
Illustrate graphically the impact in the short run and the long run of a Federal Reserve decision to increase open-market purchases.
Illustrate what are some obstacles to successful international economic policy coordination in terms of current global economic and political policies and their impact on business decisions.
Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, it is estimated that the price elasticity of demand is -3.0.
An automobile company is building a new factory in your town. what may be a positive externality of this event?
show nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data. Instructions: Round your answers to two decimal places.
If the government uses its knowledge of its monopolistic position, Illustrate what criteria will it employ when determining how many soldiers to recruit. What happens if a mandatory draft is implemented.
Elucidate why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly.
Explain why should a government be concerned with the pricing of products that a company transfers.
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