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Suppose that the firm suffers a loss of some of their technology such as the theft of their industrial mixers. After the theft, MadeFromScratch employees produce fewer cupcakes than they could before because they must mix the cupcake batter by hand rather than using the high-speed mixers. Because of this change, what is the effect on the firm's demand for labor? Is there any effect on the supply of labor? Explain.
Lizzy Richardson’s home in New York City was recently gutted in a ?re. Her living and dining rooms were completely destroyed, and the damaged personal property had a replacement value of $35,000. The average age of the damaged personal property was 5..
The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $8186 per year, beginning at the end of year 1.
What are the monopoly output and profits? Why are monopoly profits and collusive profits not the same? Is the collusive agreement in (b) a Nash equilibrium?
its marginal costs are below total average costs. If it creates an additional watch where its average total costs rise -fall or stay the same.
Download and Read "Questions about Fiscal Policy: Implications from the Financial Crisis of 2008-2009." By N. Gregory Mankiw. After reading the article, answer the following questions: During the crisis of 2008-2009, the Obama's administration's stim..
Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Technology is the same in the two countries. X is capital- intensive; A is capital-abundant. Analyze the effects on the terms of trade an..
According to both classics and Keynes, if, all else the same, the general price level increases by 5%, The demand for money will increase by 5%. Both the demand for and the supply of money will increase by 5%. In the real world, if the Fed keeps pump..
High spending and low savings in the U.S. helps cause our balance of payments issues. President Carter took us off the gold exchange standard. Most economists support a return to fixed exchange rates, such as the gold standard. If the U.S. government..
Suppose the Fed buys 3 treasury bonds from the public. The people who sold these bonds keep all their money in checking accounts. Each bond is worth $1000 (so the Fed has bought $3000 worth of bonds). Suppose further that the required reserve ratio i..
Identify opportunity cost of increase divestment. What will happen to future production possibilities if investment increases.
In the economy of Panicia, the monetary base is $1,000. People hold a third of their money in form of currency (and thus two-thirds as bank deposits). Banks hold a third of their deposits in reserve. What are the reserve-deposit ratio, the currency-d..
The manufacturer of Brand A automobile tires claims that its tire can save 110 gallons of fuel over 55,000 miles of driving, as compared to a popular competitor (brand B). If gasoline costs $4.00 per gallon, how much per mile driven does this tire sa..
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