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When the possibility of collusion exists in a duopoly, but both firms cheat after colluding, how will their actual profits differ from their expected profits?
Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP, unemployment, and inflation? Would a shift of AD to the right tend to make the equilibrium quantity and price level higher o..
What is the particular form of money (M1,M2, etc.) that would be the smallest measure that includes the type of money described in the article. (For example, if the article is about cash, write "M1."
Which of the following is probably the best example of a sunk cost? If average total cost is equal to marginal cost. Joseph can initially produce 10 pizzas or 5 cakes. After some training from a pizza-making expert, his opportunity cost of making (a)..
Game theory focuses on, "more elastic" means, Which of the following is an example of a normative statement?
What type of compensation policy would you expect to observe in an industry with rapidly changing technology? Explain. Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival successfully kept p..
Suppose a study finds that college students who received financial aid have a greater tendency to graduate than do college students who do not receive financial aid. What is the identification problem that the authors must solve? If the authors concl..
Suppose that the price per unit of input A is 8 euros and the price per unit of input B is 5 euros. What is the minimum cost of producing 100 units of output Y for the firm if the firm’s production function is Y = 4A + B/5
Explain how does the price elasticity for flu vaccinations change in times when flu is more prevalent versus times when flu is less prevalen.
A product has a negative income elasticity. What does that measure tell us about the product? Answer should be two paragraphs.
Consider a two currency model where there are U.S. Dollars ($) and the Euro (€) being exchanged. Suppose a permanent decrease in the money supply causes the U.S. exchange rate ($/€) to change in the long run. Will the long run U.S. exchange rate be a..
Identify the market structure of the industry (monopoly, oligopoly, competitive monopoly). Determine how pricing relates to elasticity of demand for competing models.
Show the effects of an increase in the total factor productivity, z, on the Laffer curve, on the equilibrium tax rate, and on consumption, leisure, the quantity of labor supplied, and output.
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