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Suppose now that Newvel's fixed costs are only $80 million per period. What would be the loan contract that a bank in a competitive banking industry would accept to loan Newvel worsens.
Specifically there is a 50 percent chance of earning $200 million and a 50 percent chance of earnings only $40 million.
Fixed costs are $80 million per period. Now what would be the loan contract that a bank in a competitive banking industry would accept to loan Newvel $80 million in each period?
Assume the corporate income tax were eliminated and revenue lost was made up through rising the payroll tax rate on labor earnings.
Assume the construction of the $360M stadium is to be financed entirely with debt to be repaid over 20 years.
Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishing returns have on short-run costs? Be specific.
Explain how does the Leontief paradox challenge the overall applicability of the factor-endowment model.
" Technological change eliminates thousands of jobs every year. Unless something is done to slow the growth of technology, ordinary workers will face a bleak future of low wages and high unemployment."
What is the marginal opportunity cost of services in each country? Who has the comparative advantage in factory-stuff?
Explain how much more money has the Fed printed and where is it now. What affect will an increased M1 money supply have in the long-run.
The macroeconomic environment discussing the effectiveness of the monetary stragies in the US.
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
Using the utility function: U (x, y) = x^gamma + y^gamma , 0
Comprising an evaluation of the impact of past and current fiscal policies, monetary policies, budget deficits or surpluses on the economy and on the airline industry industry.
A rise increase in elasticity of demand will also rise monopoly power.
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