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Suppose that the price per unit of input A is 8 euros and the price per unit of input B is 5 euros. What is the minimum cost of producing 100 units of output Y for the firm if the firm’s production function is Y = 4A + B/5
Which of the following is NOT true about a differentiated-product Bertrand duopoly?
Lately, Congress has been debating introducing a tax on sugary drinks like sodas as a way to combat obesity. a. Suppose a $1.00 per liter tax is introduced on all sodas made with sugar or high fructose corn syrup. How would the impact of the tax be a..
Critically reflect on the importance of capital budgeting. Why is this such a heated subject in many boardrooms? How does capital budgeting promote the financial health of an organization? How will you use the financial techniques you have learned th..
What is the structure of the Fed? What is the difference between the Fed and the Treasury? What are the goals of the Fed? What actions are at the disposal of the Fed?
Two banks (Franklin and Lincoln) compete for customers in the growing city of Logan town. Both banks are considering opening a branch office in one of three new neighbour hoods: Hillsboro, Fremont, or Oakdale. The strategies, assumed to be the same f..
Suppose a government is able to permanently reduce its budget deficit. Use the Solow growth model to graphically illustrate the impact of a permanent government deficit reduction on the steady-state capita-labor ratio and the steady-state level of ou..
According to economists, what is (are) the true cost(s) of a budget deficit? Does the "opening up" of an economy change the type of costs a deficit produces? Use an investment/savings diagram in your answer.
If one compares the contemporary U.S. economy with those of Germany and France, it is reasonable to conclude that
How does the law of demand relate to the price and demand for gasoline in the United States? Does this law accurately reflect reality? Use current research, personal experiences, and economic concepts to state your response.
For the following question, assume Food is graphed on the vertical axis and Clothing is graphed on the horizontal axis. Suppose Ann's marginal rate of substitution between Food and Clothing is -3. Also, Bill's marginal rate of substitution between Fo..
A person should consume more of something when its marginal A. cost equals its marginal benefit. B. benefit is still positive. C. cost exceeds its marginal benefit. D. benefit exceeds its marginal cost
You can ask anyone the question. What would you rather have? Inflation? Or being unemployed? The resounding answer would be from everyone that they would rather be employed with a higher inflation than no job and a higher inflation rate.
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