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What is the relationship between rate-of-return and bubbles. Is it correct to say that in Chinese housing market, because the rate of return is increasing, bubbles will naturally arise and growing? Can you explain it, why? (150 words minimum)
Determine profit maximization output and price. Show profits and deadweight in the graph
A monopsonist has a rising MRC curve. Why? It pays a wage lower than the competitive wage. Why? Why might firms voluntarily pay a wage greater than the competitive (market clearing) wage?
Always Round Tire is the only producer of tires for the new British import, the Maxi Copper. Demand for a set of four tires is P = 800 - 5Q (note: Marginal Revenue has twice the slope as the demand curve) while the cost incurred by the firm is MC = 1..
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 28%, 26%, 23%, 10%, 7%, 4%, and 2%. What is the four-firm concentration ratio of the hamburger industr..
Why does the percentage gain in earnings observed when worker gets one more year of schooling measure the marginal rate of return education?
Find out the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $.375 per square foot.
List and describe the four types of unemployment. Using the expenditure approach, give an equation for GDP. Now explain it. If the CPI for 2006 was 170 and the CPI for 2007 is 204, what is the current inflation rate?
In some macroeconomic models the Fed’s monetary policies play a destructive role in the economy. Identify these models and describe the monetary policies these models suggest the Fed should pursue.
Assume that two firms sell differentiated products and face the following demand curves: = 15 − + 0.5 and = 15 − + 0.5 (Assume that the marginal cost is zero) Derive the best response function for each firm. Do these indicate that prices are strategi..
Which of the following has a positive fiscal impact from immigration? a) military and veterans spending b) interest paid on the Federal government debt c) the social security program d) K-12 education funded by local property taxes
Jim currently pays premium $P for his health insurance, which he purchases in a competitive health insurance market, and covers 80% of all his healthcare costs (i.e. 20% coinsurance rate; no deductible or catastrophic cap). If he were to instead purc..
There are currently no other airlines providing direct service to Boston Logan airport. Given the number of local students who live in the northeast, United has estimated the inverse-demand for this flight to be P = 500 Q, where Q is the number of se..
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