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A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two events on the summer market for gasoline?
Suppose that Congress passes legislation making it more difficult for firms to fire workers (an example is a law requiring severance pay for fired workers). If this legislation reduces the rate at which people are let go from their jobs
Argue that the main goal of a firm in a market economy is to maximize profit shareholder wealth over the long term. How might this impact stock price in the short term.
What value added means is not a higher price for certain goods. Value added means adding value to a raw product at its present stage of production and possibly taking that product to the next stage of production.
If the price set is the profit-maximizing price, elucidate the price elasticity of demand for calculators faced by the plant.
As per what circumstances would the net welfare loss from an import quota exceed the net welfare loss from an equivalent tariff.
A small-volume automaker limits the number of franchised dealers in the U.S. and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer.
Elucidate which project should be accepted if the required rate of return for the projects
Let's watch a bank create money. Last Wednesday, the Bank of Numenor opened for business. The first customer, Edith, walked in the door with 100 silver coins called Thalers to deposit in a new checking account. The second customer, Max, walks in t..
Explain how much should the firm charge to earn the maximum profit during off peak times.
You are the manager of a local sporting goods store. Given the reservation prices, determine your optimal bundle pricing strategy.
Later Henry ford invented the assembly line for manufacturing automobiles, other automobile firms copied his invention.
Compute the new macro equilibrium under the assumption that the central bank does not respond to this shock and explain how the central bank could choose to validate this shock. Alter the AD curve to build this "validation" into the model and comput..
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