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Let’s say a machinery manufacturing company is having to lower its price to sell its products. How might this situation affect this company’s decision to borrow money and invest in its business? Would it be more, or less, likely to invest and expand?
In a perfectly competitive industry in which firms have U-shaped average cost curves, the long-run market supply curve is a horizontal line. This market supply curve is not the horizontal sum of individual firms’ long-run supply curves.
What are price indexes designed to measure. Outline how they are construed. When GDP and other and other income figures are compared across time periods.
Most industrial farms hire migrant workers, so the market for such workers is reasonably taken to be perfectly competitive. Suppose that all farms individually have a short-run elasticity of labor demand of 0.5. Explain why the reduction in employmen..
The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of ec..
State whether the following actions will increase or decrease GDP:
Do you think governments should step in and help an economy move to potential or are "markets" capable of fixing themselves? Carefully consider the impact of falling prices.
What, how and for who apply to the following the economic decision. Should the company makes its own spare parts or buy them from an outside vendor.
The price elasticity of demand for gasoline is 2. What effect will a 10% reduction in the quantity of gasoline placed on the market have on the price of gasoline?
Describe a decision-making scenario using your business experience, personal decision making or cited journal article; include an example of the decision-making process, describe the risk, and whether persuasion was used.
Explain factors that weaken the case for the public sector action such as: the special interest, the shortsightness effect, rent seeking, and weak incentives for operational efficiency.
Explain how would each of these traps impact the production possibilities frontier.
Suppose that a manufacturer is a monopolist in selling some product to a number of competitive retailers at wholesale price w. The manufacturer has marginal cost of $10 per unit. Each retailer pays w to the manufacturer and charges p for each unit it..
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