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A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restuarant has received rave reviews and has lines of diners waiting for tables most nights.
a. In the shourt run (next few months) , what measures should the restaurant take to maximize its profit? Explain.
b. In the long run ( next six months and beyond) , how ccan it maximize its profit? (Assume that the impressive state of demand is permanent.)
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Milton Friedman faiths in a steady growth monetary policy. Illustrate what does that mean and critique this approach.
Make an example of a comparative advantage model by 'choosing two countries and two products.
Assume the demand and supply for milk are described through the following equations: QD = 600 - 100P; QS = -150 + 150P, where P is price in dollars,
The economy is operating below its potential output, what kind of gap exists. Determine what kinds of fiscal or monetary policies might you use to close the gap.
Assume that businesses purchase a total of $100 billion of the 4-resources from households. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest,
Explain why is economic growth important also annual growth rate be of great significance over several decades.
Anybody Coal Corporation expects tough economic situations for foreseeable future. Their current beta is 1.2, the risk free rate is 10 percent and the required rate of return on the market is 15 percent.
The MPI is defined as increase, decrease or not affect the value of the government expenditures multiplier? Explain!
What is your marginal revenue and marginal cost functions? To maximize profits, how much should you produce at plant 1? At plant 2? What is the price that maximizes profits?
Consider demand and supply curves for many markets - the market for mineral resources, the market for wheat, the market for sugar, and market for motor homes.
The Millennium Development Goals aims were to be achieved by 2015. A few will be met; many others will not. In either case despite great progress, poverty will remain a serious ongoing concern.
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