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In an economy, ?rms set prices at a markup of 20% over costs. Costs are all in the form of wages, so that P = (1.2) W. Labor unions enter into bargains with ?rms on wages. The higher is unemployment, the less powerful are unions and the lower is the real wage they can achieve in negotiations. The real wage that gets negotiated is:W/P = 1 - 2u
where u is the fraction of the workforce unemployed. What is the equilibrium fraction of the labor force unemployed?
Hundreds of millions of people bid on eBay auctions to purchase goods from all over the world. Despite being carried out on line, in spirit these auctions are similar to those that have been conducted for centuries. Is an auction a game? Why or why n..
a. In trip calculation, it is observed that a Wal-Mart store driver successfully made a total of 104 trips in a given period of time. During field calculation, it is shown that the calculated number of trips is actually 128. What is th..
An economy is operating with output $400 billion below its natural rate, and fiscal policy-makers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding o..
What would the number of paying patients and federally funded seniors be if the federal funding agency raised its rate to $120 per treatment?
Dakota Publishers prints coffee table photo books of the mountain states and Great Plains. The marketing manager normally prices books at $35 each, and sales an average of 4,000 per month. Last month, she had a sale and priced volumes at $22.50 eac..
Sunny made a contract with Mandy selling
Discuss ways firms establish barriers to entry and explain how they benefit firms but not consumers. Give an example of a law or regulation that limits the ability of firms to establish barriers to entry and an example of a law or regulation that ..
Choose two of the following economic systems(traditional,free market,or centrally planned) and explain which of the two systems you think does the best job of achieving each goal of the major economic goals each economic system tries to meet
if consumption c 150 .8y investment i 35 govt. expenditures g 40 exports x 15 and imports m 10a. what is the
The demand for labor is said to be a "derived" demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor?
What market structure have you entered, and why - what can you do to guarantee success in market?
develop a preliminary swot strengths weaknesses opportunities and threats analysis for qmc. because this is a new
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