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Consider the following for an example of a somewhat perfectly competitive market:
Can you think of any products that are not differentiated? In other words, are there any products that you buy where brand does not matter?
Can you think of any industries where there are no (or very low) entry barriers?
According to Purchasing Power Parity, if a country has a relatively high inflation rate then its currency should be depreciating. Explain.
suppose a monopolist can separate its customers into two groups. If the monopolist practices price discrimination, it will charge the lower price to the group with: The XYZ Company is a profit-maximizing firm with a monopoly in the production of UIC ..
Explain how would a citizen whose income is in the bottom one percent talk about scarcity and trade-offs.
q1. the government is involved in providing many goods and services. for each of the goods or services listed determine
1. derive the fundamental equation of the solow model2. country a as well as country b both have the production
Suppose the competitive market price is $50, and a competitive firm’s total costs = 5q2 - 10q + 150 and marginal cost = 10q - 10. What is the market equilibrium price? Should the competitive firm produce q*? Explain why using one of the four key ques..
Which of the following would eliminate scarcity as an economic problem? Moderation of people’s competitive instincts. Discovery of large new energy reserves. Resumption of steady productivity growth. None of the above because scarcity cannot be elim..
Suppose aggregate supply shifts to the left by $2,000 at each price level. What happens to the economy's macro equilibrium position? Suppose aggregate demand shifts to the right by $4,000 at each price level. What happns to the economy's macro equili..
Compare an $80,000 median family income in 1980 to the same income in 1990, 2000, and 2010. What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years would..
According to tournament theory: Pay gaps between job positions get larger at successively higher levels in the organizational hierarchy. High executive pay is due to moral hazard. People seeking the CEO’s job compete to acquire the right signal about..
Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..
If there is a 10% decline in the cost of women's fur coats and a 25% increase in quantity demanded Illustrate what is the elasticity.
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