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Assume good "X" is produced in a monopolistically competitive market. In addition, each of the firms in the industry uses essentially the same technology. Competitors distinguish their individual products primarily through persuasive advertising. Assume that one of the firms in the market discovers a new production process that substantially reduces the average costs of production. Analyze the effects of this discovery on long-run equilibrium in the market
Suppose the demand curve for UK basketball tickets is perfectly elastic but the supply curve for UK basketball tickets is not perfectly elastic or perfectly inelastic. If the equilibrium price of UK basketball tickets is initially $2, a downsizing of..
In many states, including Florida, it is illegal to engage in price gouging. Florida’s law penalizes a seller for any “gross disparity between the quoted price of a ‘necessity item’ such as water, and the item’s price on the date that the governor de..
Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys $400 worth of goods from Firm Y, and $200 worth of goods from Firm Z to produce 250 units of output at $3 per unit. using the Value Ad..
(A) Determine the least squares regression equation. (B) Predict the total sales if the new car registration is 19 thousand.
a. What is the difference between direct and indirect costs of education?
For which categories of spending have prices increased the most? Have any categories experienced price declines?
Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.
You have taken a long position in a futures contract on corn at $2.60 per bushel. Over the next 5 days the contract settled at 2.52, 2.57, 2.62, 2.68, and 2.70. You then decide to reverse your position in the futures market on the fifth day at close...
Illustrate and explain how a government budget deficit can lead to a higher real interest rate. Discuss how the effect of a budget deficit on the real interest rate could be altered by an increase in private savings.
Suppose the amount 207 is paid at the end of each of several equal periods and 0.059 is the interest rate per period, then at the end of these periods, the total amount paid is 951. Find the number of periods; due to uncertainty in the interest rate ..
China’s real GDP was 7,394 billion yuan in 2005 and 8,000 billion yuan in 2006. China’s population growth rate in 2006 was 0.5 percent. Calculate China’s economic growth rate and growth rate of real GDP per person in 2006.
Please search for some information about the Dodd-Frank Act and share with us. Please evaluate this act by answering the following questions: Do you think this Act can successfully avoid financial crisis in future? Why or why not?
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