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Assess the degree of difficulty associated with measuring marginal revenue product for each of the following occupations. Provide a brief explanation in each case. You may want to review the definition for marginal revenue product before preparing your answers.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
What is the difference between contractionary and expansionary monetary policy?
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Problem on standard deviation
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
Discuss how a change in price affects total expenditure by filling in each cell with resulting change in total expenditure.
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
Changes in government spending and interest rates
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
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