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What do we mean when we say export are exogenous and import are endogeneos?
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Suppose a government is established in a country where none previously existed. The government spends 80, financed by borrowing, to provide public services. If autonomous consumption plus investment is 210 and the marginal propensity to consume MP..
In 1929 and 1933, GDP measured in current prices fell from $96 billion to $48 billion. Over the same period, relevant price index fell from 100 to 75.
Using the tools of analysis developed in this course, demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society economic welfare.
From the two businesses perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this market, and existing firms operate under the assumption that the ri..
Suppose you are the production manager for Widgets, Inc. Your job is to produce a fixed amount of output at the lowest cost possible. When you take over the position, you find that the price paid for a unit of labor is $20 (W = $20), and the price..
Assume that two firms merge. E.g., Firm 1 decides to buy Firm 2 and shut it down. Assume that the merger does not change marginal costs. Calculate Cournot-Nash equilibrium profits for each active firm in the new equilibrium
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
Entry of firms in a monopolistically competitive industry is characterized by two "external" effects. What are these effects and how do they affect a monopolistically competitive firm. How are consumers and incumbent firms influenced by these exte..
Considering factors such as food supplies, population growth, water availability and renewable energy, compare the marginal costs and the marginal benefits of global warming and describe what an ‘environmentally sustainable' economy would be.
P stands for price Pr stands for price of related good also N stands for per capita disposable income.
Illustrate rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.
Suppose the present market conditions of Microsoft Corporation.
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