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An airline loses money on one of its routes but has decided to continue to provide service. Could this decision be economically rational in the short-run? In the long-run?
An investor sells a stock short for $36 a share. A year later the investor cover the position at $30 a share.now assume the price is at $42 when the investor closes the position?
Suppose that, over the short run (say, the next five years), demand for OPEC oil is given by Q = 57.5 - .5P or, equivalently, P = 115 - 2Q. (Here Q is measured in millions of barrels per day.) OPEC's marginal cost per barrel is $15- What is OPE..
Compute the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect t..
how do you explain the fact that in some countries there is widespread political support for government policies that expropriate resources from some groups for the purpose of handing them out to other groups
A solar-water heating system uses solar panels on the roof of a large build, 40.0 m above the storage tank. The pressure at the panels is 1 atmosphere. What is the absolute pressure at the top of the tank?
How a competitive market arrives at equilibrium and why the price of tomatoes has risen - Discuss the factors that affect the price elasticity of demand as they apply to tomatoes and make a suggestion based on your appraisal as to the likely price..
When the Fed buys government securities in the open market, the money supply ________ because ________. In the quantity theory of money, the assumption that aggregate output is fixed is based on the view that ________.M1 differs from M2 because _____..
Explain in details how money evolved over time sitng why and how the gold standard came into being.
the study of government regulation and the competitive environment for business is relevant to all those who study
Integrating Problem: The research department of the Corn Flakes Corporation (CFC) estimated the following regression for the demand of the cornflakes it sells:QX = 1.0 - 2.0PX + 1.5I + 0.8PY - 3.0PM + 1.0Awhere QX = sales of CFC cornflakes, in millio..
How can currency depreciation - induced changes in household money balances promote payments equilibrium?
Draw the graph of demand and marginal private cost curves for the factory - Find the equilibrium price and quantity.
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