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What do we meanwhen we say that a firm is a perfect competitor in the productand labor markets? Does it have anything to do with many firmsproducing the same good with the same type of labor?
Economists classify production functions as possessing constant, decreasing or increasing returns to scale. Yet, from a cause-and-effect point of view, it is not readily apparent why decreasing returns to scale should ever exist. That is, if we du..
The domestic supply curve is P=30+0.5Q. The world price for lithium batteries is $40. If the quota is set for 20 units, what is the deadweight loss from the quota?
The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows-What is the price elasticity of demand if price equals $500?
An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap-inflationary or recessionary-will theeconomy face after the shock
a). Derive the equation for the IS curve b)Find the equation for LM curve. c)express both IS and LM curves in terms of r, and graph both curves.Find their slopes. d) Calculate the equilibrium levels of real utput, interest rate, planned investment, a..
Suppose prices are determined as a simple mark-up over expected wages: p-w^e=a0-a1U Assume further that wages are a simple mark-up over expected prices: w-p^e=B0-B1U Use the equations above to show that when prices are different from price expectat..
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
A monopolist produces according to the following demand curve: p=200 - 4Q. Assume that the firm faces a constant marginal cost and constant average total cost of 60 per unit produced. A.calculate the optimal output that this monopolist should prod..
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure
The engineering approach to price estimation is depends on the least cost available technology needed to achieve a given level of abatement. The survey approach to cost estimation relies on estimated abatement expenditures obtained directly from pol..
If the gov spends $10 million giving subsidies to certain types of companies, is that money added to the category of G. What about if the gov gives a grant to a company. What about transfer payments made by the gov to the poor.
Elucidate your answer also describe terms relevant to elasticity used in your explanation.
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