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With the current level of capital is the marginal product for capital 0,12. The rate of depreciation is 6%, the nominal interest rate of a company loan is 8% and the expected rate of inflation is 3%. Should the company increase its level of capital?
a) What should they do if the product market has full competition (please write with equations)
b) A market with monopolistic competetion and a mark-up of 20%
Combinations of goods on the production possibilities frontier
Create your own games. You will need to set it up one normal form for a one-shot simaltaneous game and one shot sequential move game. These should be seperate games - not the same parameters for both. What is each players dominent strategy? What is t..
Illustrates what are the advantages of utilizing the funds in the construction process.
Official unemployment rate statistics may
Suppose the Stimulus package (The American Recovery and Reinvestment ACT of 2009) for $862 (originally it amount was approved for $787 billion and subsequently increased to $862 billion) was allocated for spending in all 3 components of the AE model ..
Use the Keynesian-cross model to illustrate graphically the impact of an increase in taxes on the equilibrium level of income.
Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table: where the number on the left is the payoff to Player A, and..
What are the effects of an increase in aggregate demand in the aggregate demand and aggregate supply model consistent with the Phillips curve.
Briefly explain why firms that pursue cost leadership or diffentiation achieve returns that are about equivalent, have higher returns, and firms that are stuck in the middle have the lowest returns?
Determine the new equilibrium price and quantity and how much tax revenue does the government earn with $6 tax.
Illustrate what are the pros and cons of using expansionary and contractionary fiscal policy tools under the following scenarios: depression, recession, and robust economic growth.
Indirect price discrimination differs from direct price discrimination because:
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