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1. Consider the competitive market for natural gas. Now suppose that the price of renewable energy (a substitute for natural gas) decreases because of a technological advance. Answer the following questions about the natural gas market.
a. Draw two graphs, side by side, illustrating the short-run effects of the fall in renewable energy prices on the natural gas market and an individual natural gas firm’s output and profit. Use a graph with a ‘typical’ set of average total cost (ATC) and marginal cost (MC) curves.
b. Briefly explain the long-run effects of the fall in renewable energy prices on the natural gas market by using a graph (or graphs) to show the likely effects on the profits of natural gas firms, and the market price and market quantity of natural gas.
Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs.
The Determinants of Market Interest Rates. An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation.
In the last year, what is an example of something you have done that can be considered a socially responsible effort? How do you think this has helped your community?
Given a production Yt=(Abar)Kt^(1/3)Lt^(2/3) and K*=1000 and Abar=3/2. and also there are Lbar=1000 workers who supply labor in elastically. What does the long run model say wage in this economy is?
Assume a firm (a) is a monopsonist in hiring labor and (b) is selling its product as a monopolist. Portray this market graphically. Correctly label all relevant curves, show the equilibrium wage rate and level of employment, and indicate the efficien..
What is the definition of a contract? What are the required elements? What is the distinction between a void and avoidable contract; between an executive and an executor contract; and between a unilateral and bilateral contract?
Your state has a retail sales tax of 10% but it exempts food, prescription drugs, and all services including housing services, repair services, and use of electricity and other public utility services.
“Highly achievable budget targets reduce the risk of gameplaying. The stakes associated with budget achievement in most firms, which include bonuses, promotions, and job security, are so significant that managers who are in danger of failing to achie..
A famous American has been visiting the same tropical island for 15 years for vacations. When she goes she pays for everything by writing checks drawn on her U.S. bank. The currency the natives use are not U.S. dollars; they use a currency called a f..
The terms price maker, price setter, and price searcher are all meant to imply the same thing, In monopoly,
Explain how does the deposit primarily change the T-account of the local bank. How does it change the money supply.
U.S. is currently suffering from underemployment and excessive current account deficit. a) What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools. b)..
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