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Suppose you are given a money supply model where r = 0.1, e = 0.2, and c = 0.4. What is the money multiplier? What change in the money supply will result from an open market sale of $400,000?
Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?
Discuss the Arbitrage Pricing Theory and the Fama-French factor and the “preciseness” of techniques used to calculate cost of capital. How does one decide on which technique is best to use?
Describe the shape of the average total cost function and also label the minimum point on the curve.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
Estimate and explain how the electrical monopolist would determine its profit-maximizing price and output level.
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
Explore in particular how the firm responds to the macroeconomic conditions in terms of the stock performance, current also future sales revenue, current also future profits, and worker costs also hiring decisions.
q1. assume that a very competitive start-up enters the market in direct competition with the oligopoly you described in
What is the role of models in economic analysis? How can it be determined if the assumptions underlying the design of an economic model are overly simplified or overly limiting? At what point do the assumptions invalidate the model? Why?
From the e-Activity, determine the environmental variable most likely to affect the short-run production over the next 12 months. Determine what managers can do to prepare for the possible change in short-run production.
In macroeconomics from williamson (4th edition) chapter 11 problem 7, if the number of atms increase should not it increase the credit supply? Instead of the credit demand because of an increase in R, as it’s done in this solutions manual?
Elucidate how a firm's production function is related to its marginal product of labor, how a firm's marginal product of labor is related to the value of its marginal product.
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