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Many small boats are made of fiberglass, which is derived from crude oil. Suppose the price of oil rises:
a. Using diagrams, show what happens to the cost curves of an individual boat-making firm and to the market supply curve.
b. What happens to the profits of boat makers in the short run? What happens to the number of boat makers in the long run?
If you were a supplier to the furniture manufacturer, would you have preferred to see the analysis performed in physical sales units rather than dollars of revenue How would this change alter the interpretation of the price coefficient, presently ..
Is this an externality, given that you yourself are suffering from slow traffic?
A movie theater has estimated that the demand for a movie ticket can be written as P1 = 10 - Q1 for senior citizens and P2 = 12 - Q2 for the rest of the customers. The marginal cost of a movie ticket is $1. If the movie theater practices third-deg..
What is the link between changes in the capital stock and the level of productivity (output per worker) in the long run? What is meant by capital deepening?
Calculate how much total spending as a percentage of GDP has increased since the 1960s.
Analyze the effect of the following two policies: first, a subsidy to research; second, a patent policy, in which each patent expires at the rate ι > 0. Explain why the effects of these policies on economic growth are different than their effects ..
Suppose that investment is $130, saving is $110, government expenditure is $120, exports are $210, and imports are $220. How to calculate the tax revenue and government budget balance?
Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.
Suppose the national-income model: Y = C + I + G C = a + b(Y - T)(a > 0; 0 0; 0
Your company is considering purchase of a new DNA analyzer for $250,000. This should open up a new business revenue stream for product testing which will produce $80,000 per year in revenue. Annual operating costs are estimated at $10,000 per ye..
The real risk-free rate is 3.3%. Inflation is expected to be 3.15% this year, 4.25% next year, and then 3.4% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-yea..
You just bought a bagel shop. A market study shows your customers are willing to pay for a bagel into 9 equal-sized groups: ($3.00, $2.75, $2.50, $2.25, $2.00, $1.75, $1.50, $1.25, $1.00).
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