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Sandy has an income of $300 per month and qualifies for food stamps. The food stamp program awards people $100 per month, but that money can only go towards the purchase of food. Assume food costs $1 per unit. Draw Sandy’s budget constraint with the food stamp program in effect. Label all axes, intercepts, slopes, and “kink points” (x- and y-values of where the slope changes), if possible. Assume “all other goods” is the y-axis good
We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order.
In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. Cite as many examples as you can of these types of businesses.
JET FAB bought a CNC laser cutting machine at a cost of $400,000 to meet the specific needs of customer that had given a 4-year contract with the possibility of extending the contract for another 4 years. Consequently, the company ended up selling th..
Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations’ government change taxes in order to completely close that GDP gap?
Researchers have found a hybrid of corn that is cheaper to grow. This technological breakthrough
Elucidate what are the arguments in favor and in opposition to an independent central bank.
Elucidate what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies which would be appropriate for addressing this situation.
should the fed be independent?1. nbspthe federal reserve system has a large measure of political independence. the
Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5 percent on investments since it began producing polyglutamate-a rate comparable to the average rate of interest that large banks paid on deposits over this ..
Illustrate what are the assumptions being made about Jackie by her colleagues also managers.
write down expression for marginal revenue. choose the quantity and the price to maximize profit, assuming firm can only charge one price.
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