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If JMJ Industries realizes a profit of $4 per unit sold, what is the fixed cost portion of their production costs? Their variable costs are $1.50 per unit, and they sell 1,000 units per year at a price of $6 per unit.
A private golf club has two types of members. Serious golfers each have an individual demand curve given by = 35 ? .1??, while casual golfers each have an individual demand curve given by ?? = 10 ? .2??. Here, P is the price per round of golf and Q i..
Elucidate how much labor should the firm employ. What is the resulting output and profit.
Winston Churchill once thought that democracy is the nastiest form of government except for all others.
Consider an offshoring model in which Home’s high-skilled labor has a higher relative wage than Foreign’s high-skilled labor and in which the costs of capital and trade are uniform across production activities. Will Home’s offshored production activi..
On aggregate demand does fiscal policy have a strong impact. Explain the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand.
The Port Authorities of New York and New Jersey estimate that the annual net revenues for the George Washington Bridge (GWB) will total $13M by the end of this year (t=1). At the end of three years (t=4) you expect a toll increase of 10%. Revenues wi..
What are the functions of money? What is the difference between fiat money and commodity money? What are the two responsibilities of the Federal Reserve? Please explain how the three traditional tools of monetary policy work in terms of expansionary..
What lessons can we learn from the Chad-Cameroon Oil Pipeline and the Lesotho Highlands Water projects? What corrective measures should be taken?
The congestion fee was raised to £8 in July 2005. Illustrate the new equilibrium point on your graph also assuming new charge is now optimally set.
An equal number of consumers who have a willingness to pay of $119 are allowed to buy the good at a price of $99. How will consumer surplus be affected.
The greater the elasticity of the LM curve, the greater will be the effectiveness of fiscal policy. The more interest elastic the investment demand function, the more effective monetary policy will be. The more interest elastic the investment demand ..
Discuss the pros and cons of the two “advanced” forms of estimating energy demand. What do they excel at and where are they lacking? How might policy changes be built into the models? Assume the following two equations for the extraction of a natural..
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