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Suppose that you own a home remodeling company. You are currently earning short-run profits. (Hint: If this is a perfectly competitive industry, what happens in the long run to the number of firms?) Assume that the home remodeling industry is an increasing-cost industry. In the long-run, what do you expect to happen to:
Assume that the demand for chalk is p = 8 -0.1, where P is the market price and Q is the total market output measured in thousands of boxes of chalk. Suppose that there are three firms in this industry, each of which has a constant variable cost of $..
Monetary policy is limited in its impact when There could be more than one answer.
Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
The radio manufacturing industry has been in decline for quite some time. Suppose the government is called on to save this industry with infusions of cash, low interest loans, or other special breaks. This might be touted as helping firms remain open..
A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing.
The year 2014 closed with the unemployment rate just below 6 percent, real GDP growing at roughly 2.5 percent, inflation below 2 percent, and the federal budget showing a deficit under 3 percent of GDP. Give one or more arguments for engaging in expa..
Consider a small nation producing both computers (y-axis) and coffee (x-axis) and facing increasing opportunity costs. Starting from a free trade equilibrium where this nation exports coffee and imports computers, can this nation experience “immiseri..
If their interest rate is 1% per month, what is the equivalent monthly cost for a 3-year lease? What is a comparable monthly lease cost?
Economic theory offers ______ about the full range of possible events and responses, which can prevent _______ about how households will respond to changes in prices or incomes.
Which would be the most accurate statement with respect to our chemical industry?
Comment on the following quotation: "One way that a minimum wage could result in expanded employment is if the government sets the minimum below the market equilibrium wage."
Identify and describe (5) key characteristics of a monopolistic competition market. Define a cartel. Give 3 examples of a cartel in the business world.
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