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Find an example of a recent major decision (whether in business, politics, etc.) that was made based on assumptions that turned out to be incorrect. Explain why at least 2 assumptions for this decision were incorrect, and explain what led to their use as a basis for the decision. What would you have done to test the validity of the assumptions? What specific kinds of research, testing, or surveying might you have performed if you were the decision maker in a similar situation in the future? What, if anything, would you do differently about the assumptions being made?
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
A perfectly competitive market company realizes an average of $11 and an average total cost of $10.00. Marginal cost curve crosses marginal revenue curve at an output level of 100 units.
Using the three quarters moving average, find out the the forecasts for 3rd quarter 2010, 4th quarter 2010, and 1st quarter 2011. Use the given data, actual demand 3rd quarter year 2010 is 260, the actual demand 4th quarter year 2010 is 270, and t..
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
The prices of outstanding bonds change whenever the going rate of interest changes. In general, short term interest rages are more volatile than long term interest rates.
Also address the impact of real GDP, the unemployment rate, and the inflation rate as measured by the consumer price index (CPI).
What is the value of the money multiplier and What are the nominal values of deposits, currency, and reserves
the government needs to reduce smoking by 20%, by how much should it increase the price.
As per the Solow model, how would each of the following affect consumption per worker in the long run.
Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.
Elucidate good or service does the company sell. Is the price elasticity of demand elastic or inelastic for that good or service.
The capital-labor ratio of a cost minimizing firm in the long run indicates explain how a firm should produce its output, not how much output it should produce.
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