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Price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive because price minus cost equals marginal revenue. and marginal cost are the same in pure competition. is the same as average revenue. is constant regardless of the quantity demanded.
Assume if the inflation rate is 5percent is this still acceptable. Provide quantitative justification for your answer.
Suppose the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound of money supply.
A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month), of which $8,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm..
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..
What did classical economists assume about the flexibility of prices, wages, and interest rates What did this assumption imply about the self-correcting tendencies in an economy in recession
Suppose the following equations explain a hypothetical economy where both price level and interest rates are fixed. Find the equilibrium level of income in this economy
In a speech, Professor Gregory Mankiw contends that our elected federal leaders should raise the gasoline tax. Not quickly, but substantially.
TLC Lawn Care, Inc. provides fertilizer and weed control services to residential customers. Its seasonal services package, regularly priced at $250, includes several chemical spray treatments. As part of an effort to expand its customer base, TLC..
Consider a farm in the former Soviet Union. Try to describe how dicisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were made under the old communist regime.
Create a map of the polarity you have chosen from the simulation. Be sure your poles represent a true polarity and that your cells contain at least two to three items each. Explain the polarity dynamic of your map.
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event...
We often find that for major sporting events (playoffs, Super Bowl, etc.) the quantity of tickets demanded is greater than the quantity of tickets supplied. How would the market solve this problem
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