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In class we have dealt with the profit function defined as:
Profit = sales price * quantity sold – cost per unit * quantity produced
With regard to this profit function, write a paragraph to explain why microeconomics is important to businesses and their profits.
With regard to this profit function, write a paragraph to explain why macroeconomics is important to businesses and their profits.
Explain why the balanced budget multiplier is equal to one (i.e., if government spending increases by 10 billion and taxes increase by 10 billion, equilibrium GDP increases by 10 billion). What would provide more stimuli, a 10 billion dollar increase..
Which of the following methods of stimulation the economy provides the federal government with the greatest control over how the stimulation takes place? – decrease in interest rates, a decrease in income tax rates, an increase in investment incentiv..
An individual utility function is given by U(c,h) = c.h, where c represents consumption during a typical day and h hours of leisure enjoyed during that day. The real hourly market wage rate the individual can earn is w = $20. This individual receives..
Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack,
Three alternatives are being considered. Alternative A has a useful life of 3 years; Alternative B, 5 years; and Alternative C, 6 years. Using the longest life (LCM) approach, what is the planning horizon?
Which of the following is not a characteristic of a monopolistically competitive industry? easy entry and exit
If a nonbinding price floor is imposed on a market, then:
Given the Demand and Supply functions: Draw the demand and supply curve. Identify Consumer and Producer Surplus in the graph. Find consumer surplus, producer surplus, and social welfare. The government sets a price floor Pf = 150. Is the price floor ..
A recent analysis by Bloomberg Magazine discusses what would happen if England would suddenly leave the European Union, in terms of “shocks” in Consumer expectations, Investment, Credit and Currency. Since this has never happened before, people are u..
Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again.
The opportunity cost of holding money is that you
Explain how incomplete information can cause market failure. Give at least one example of this type of market failure and explain how government intervention has been used to correct the problem. How effective has this form of intervention been? Use ..
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