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Use the ADI curve to describe how the economy would respond to a productivity shock that increases full-employment output. If there is no impact on the ADI curve, what will happen to output in the short run?
Suppose that BMW can produce any quantity of cars at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. You are asked to advise the CEO as to what prices and quantities BMW should set for sales in Europe and in the United S..
Zero economic profits but positive accounting profits
An engineer wanted to celebrate graduating and getting a job by buying $2,400 of new furniture. Luckily the store was offering six-month financing at the low interest rate of 6% per year compounded monthly. Calculate the amortization schedule.
Assume that there is no substitution effect from changes in wages. Use two graphs to show the effects of the increase in the wage on the quantity of labor demanded.
tax-exempt debt currently requires an interest rate of 6.2percent and its target capitalstructure call for 60 percent debt financing and 40 percent equity(fund capital) financing The estimate cost ofequity for selected invester-owned health care c..
Going to Medical School at the Age of 50. While we might admire someone who decides to attend medical school at the age of 50, explain using human capital theory why this is so rare.
How many workers of each type will employers hire? If workers' abilities are not observed by employers, what is the equilibrium wage? How many workers of each type will employers hire? What is the deadweight loss due to asymmetric information?
Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.
The second is that the economy has been in a cyclical boom and unemployment has fallen well below the natural rate. How might you distinguish between these two hypotheses? Do they have different implications for inflation?
Identify the diversity challenges that Coach Boone had to face by coming into the head-coaching role.
Two airlines, A and B, are deciding to choose whether Atlanta or Chicago should be their major hub. Given the diagram here, find all equilibria of this game. Airline A Atlanta..
In the long run, Martha Mowers can assemble 300 mowers per week at a total cost of $18,000; 400 mowers at a total cost of $24,000; or 500 mowers at a cost of $35,000. Using the red points (cross symbol), plot the long-run average total cost (LRATC)..
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