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a. Why do firms demand resources? In what way is a firm’s demand for a resource a derived demand? How does this differ from consumers’ demand for final commodities?
b. What determines the strength of a firm’s demand for a productive resource?
Using Minitab estimate the expected value of its profits and standard deviation of profits and calculate the expected value of returns of stock A & B
The marketing team of Burton Snowboard is analyzing her demand for two types of snowboard – Professional and Standard models. At Thanksgiving sales, the Professional board is discounted from the original price of $1,000.
A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output and each hour of labor produces five units of output. For L number of workers hired each hour and w hourly wage rate, the firm faces an upward- sloped labor..
Identify the part of the business cycle that is characterized by: The economy is at full employment. The growth rate of aggregate demand exceeds the growth rate of aggregate supply. Recession. Recovery and non-inflationary growth.
If a small country wants to protect its domestic producers from more efficient foreign competition by imposing an import tariff, will it come out ahead Do consumers lose when a large country protects it's less efficient producers from foreign comp..
"A shift outward in the demand curve always results in an increase in total spending (price times quantity) in a good. On the other hand, a shift outward in the supply curve may increase or decrease total spending."
In your opinion, should economic tigers be feared or tamed?
Compare the consumer surplus, producer surplus, and total surplus in this condition to those same measures in a perfectly competitive market.
Explain what happens to a market when Supply and Demand are not in equilibrium. Provide two instances from your personal experience when you observed the "disequilibria" of supply and demand in the market,
What will be the possible concequences if a large scale like Toyota place its new product in Indian market without having forecast the demand for its product
A profit maximizing monopolist is earning a positive economic profit. The wage it pays its workers rises. How will the firms choice of Price and Quanity change in response to the wage increase. Use a diagram in your answer.
The principal-agent problem arises when the interests of owners and workers diverge. because of diminishing marginal returns. when the interests of owners and workers converge. because of the profit incentive.
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