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If the core PCE price index is a better measure of the inflation rate than is the CPI, why is the CPI more widely used? In particular, can you think of reasons the federal government uses the CPI when deciding how much to increase Social Security payments to retired workers to keep the purchasing power of the payments from declining?
The utility function of a consumer is given by U = log(b) + log(c) where b and c are the consumption levels of barley and corn. Assume that the price for both goods is $1 and that the consumer has an income of $100. Assume that the government introdu..
Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate? How do fixed costs play a role in your an..
Explain how McGregor's Theory Y assumptions can create self-fulfilling prophecies consistent with the current emphasis on participation and involvement in the workplace. How do ethical dilemmas complicate the workplace
According to a study of US cigarette sales among 1955 and 1985, when the price of cigarettes was one percent higher, consumption would be 0.4 percent lower in the short run and 0.75 percent lowers in the long run (Becker et al., 1994). Compute the sh..
Assume now that the housing bubble bursts and consumer demand for new homes drops sharply. We model this as a negative aggregate shock a=-2%. Assume also that at the same time risk in the economy goes up as well increasing risk premium to 5%. What is..
identify an article that demonstrates the application of time value of money principles to a business decision.explain
you are the manager for dunkin donuts and know the following elasticitiesnbsp? 1.5 ?nbspinbsp 1.2 ?nbspxy1nbsp 0.5
Explain how you would modify the data in order to make it relevant to decisions a manager must make. Explain the major factors that affect the degree of competitiveness in your industry.
Make a table showing the marginal cost of paper cup productions. What is the minimum price necessary for company to supply one thousand cups?
the demand function for einstein bagels has been estimated as follows qx -15.87 - 40.73px 84.17py 0.55axwhere qx
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?
You are to select a newspaper/magazine/web article for economic analysis. The article must relate to Micro Economics. The article must also have been written after 1st June, 2012. You are to apply your economic theory to explain and analyse the newsp..
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