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If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.
What will happen to the number of firms, the market supply, and the price of the good as we move from the short run to the long run?
There is a duopoly of beer producers, Biller and Moors, who produce identical hoppy ales, and each have marginal costs of $100 per keg. Assume there are no fixed costs. What are the best response curves in Cournot Oligopoly for these two producers? W..
How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1(q) = 10 and MC2(q) = 20. Find the prices that form an equilibrium (for simplicity and reality, assume that prices are quoted in units no sm..
Why does an individual's demand curve normally slope down. Why does a market demand curve normally slope down. Why does a firm's supply curve normally slope up. Why does a market supply curve normally slope up.
While tariffs and quotas have declined drastically under GATT and the WTO, nontariff barriers have been on the rise. Why would countries use nontariff barriers to distort natural trade patterns? Are there situations when the use of nontariff barriers..
A contractor is looking at purchasing a new piece of construction equipment. He can either buy it now or two years from now. The cost is $68,000 if purchased now. If purchased in two years, it will cost $81,000. Assume i = 10%/year and inflation f = ..
Illustrate what is the value of goods and services purchased by the government of Numidia.
You have decided to purchase a large screen TV and the Rent to Own store. The TV would cost $1,200 but you will be making payments of $150 a month for a year. Assuming your MARR is 22%, compounded monthly, what is the present worth of this purchase?
In a large city, a good, real-world example for perfect competition would be. A firm under monopolistic competition will earn
A linear cost per week
A firm that finds it extremely expensive to monitor the output of each worker will likely pay its workers
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