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A national car rental agency asks, “Do you want to bring back the economy-class car full of gas or with an empty tank? If we fill up the tank for you, we’ll charge you $3.50 per gallon, which is 50 cents less than the local price for gasoline.” Which choice should you make? State your assumptions. (2.4)
An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..
The Acme Paper Company lowers its price of envelopes (1,000 count) from $6 to $5.40. If its sales increase by 20 percent following the price decrease, what is the elasticity coefficient?
Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer payments for 12 months, and Kris makes 48 end-of-month payments thereafter. If the original note (loan) is for $28,000 and interest in 0.5% per month ..
Identify the Classical prescription for curing unemployment and contrast it with the Keynesian prescription. Which prescription do you agree with? Why?
A representative of the American clothing industry recently made the following statement: Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. Is the ..
Small country Alpha exports lumber products obtained by cutting Alpha's forests. Cutting the forests creates negative external effects in Alpha.
Cher's marginal rate of substitution of earrings (E) for necklaces (N) is 5 (MRSEN = 5). This information implies that:
Sketch the aggregate demand-aggregate supply model of the macroeconomic for the short run, assuming that the economy is in the expansionary phase of the business cycle.
Which of the following is an example of implicit cost for a firm?
That's constraint on or side. For Indonesian voters, are economic issues paramount in this election.
If the rate of inflation in consumer prices is less than the rate of increase in a person's nominal income, that person's:
Show graphically the labor input decisions of the following situations:
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