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Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes?
Assume the firm does enter the market and that, over time, increasing competition causes the price of telephones to fall to $35. Under these circumstances, what would be the firms optimal output, price and profit (or loss).
the short-run equilibrium values; and vi. the long-run equilibrium values. State in words what happens to prices and output in the short run and the long run.
Write down an expression π(q ) for profits as a function of q. Find profit-maximizing choice of q for Smith and corresponding price and profit.
Suppose that Iggi and Kurt begin trading ice cream and waffle cones with each other. Illustrate what can be said about the trade patterns between Iggi and Kurt.
If the general inflation rate is 6% compounded monthly, find the Actual-dollar value and the Constant -dollar value of the 20th payment.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
Show that these choices are inconsistent with expected utility maximization.
Why should this policy be undertaken under conditions where economy is at some GDP level less than full employment level? You may use a long run aggregate supply curve to bolster your argument here.
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
The price of twinkies fell from 0.80 to 0.70.As a result,the quantity demanded of Ho-Ho's decrease from 120 to 100. Illustrate what would be the appropriate elasticity to compute. compute this elasticity.
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
Consider a simultaneous-move auction in which 2 players simultaneously select bids, which must be in nonnegative integer multiples of one cent.
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