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Consumers' preferences are uniformly distributed on the unit interval. Prices are fixed such that ( p - c) = 1 and the number of consumers has been normalized to one. Firms enter sequentially and incur a startup cost of 1/6. Suppose that startup costs are not sunk-firms can costlesslyrelocate. What is the free-entry number and location of firms?
Why might a banking crisis lead to a fall in the money supply? If the Federal Reserve wanted to correct this reduction in money supply, what are three methods they could use and how would they undertake each action?
What assumptions must hold for OLS to give an unbiased estimate of β1, the structural effect of increasing the police budget on the murder rate?
1 suppose the market for grass seed can be expressed asdemand qd 100 - 2psupply qs 3pif government imposes a 5
Lender perceive that you are risky,so you must pay 12 annual percent interest to borrow from them. You only receive only 6 percent on the funds you have deposited in the bank.
according to a study of u.s. cigarette sales between 1955 and 1985 when the price of cigarettes was 1 higher
A perfectly competitive firm faces a market price of $10 for its output X. It owns two plants, A and B, whose total costs are TCA = 10 + 2X + .25X2 (to the second power) TCB = 15 + .4X + .1X2 (to the second power).
when measuring the gdp for a particular year why do economists include only final goods? why dont they include the
What is the consumer surplus [loss] associated with the merger and what was the profit before the merger? after? increase? How does the consumer loss compare to the increase in profit?
If Microeconomics is considered to be study of scarce resources. In which customers must make allocation decisions. These 3-basic trade offs include which products or services are to be manufactured
Formerly, market for air travel in Europe was highly regulated. Entry of new airlines was severely restricted, and air fares were set by regulation.
Compute the cash flow for the 20 years for the cogeneration system as an increment relative to the avoided cost of utility electricity and natural gas
What is the market price of the product and draw the social demand curve and what is the socially optimal output - By how much does the market overproduce this good?
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