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Suppose the price of capital in the restaurant industry decreases. Explain how the decrease in the price of capital affects the demand for labor in the restaurant industry. The supply of a particular type of labor to a firm is less elastic than the supply of labor to the market. True, false, or uncertain? Explain.
Mary Carey, a clever 3360 student, has borrowed $125,000 at 8% from her parents. She is asking Dragon Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. If they both agree, what is Mary's before-t..
Wage rates tend to change with national rather than with industry productivity because:
After a few years of monopoly, the family that owns the coca-cola monopoly gets in a flight, and they split the company in two. Now there are two large coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pr..
q.howard bowen is a large-scale cotton grower. the land as well as machinery he owns has a current market value of 4
Based on standard monetary theory, if the Fed purchases Treasury Bills from banks:
Assume the market for used cars is set up as in the table below. There are two types of cars: lemons and peaches. Peaches are more reliable than lemons and thus have a higher value to both buyers and sellers. Sellers know the quality of their car, bu..
What is the difference between the Federal Reserve’s “discount rate” and the “federal funds” rate? Why is the discount rate in the US not as important in financial markets as the federal funds rate?
In deciding where to operate along its production possibilities frontier, a society is answering the question of
Larry earns $25,000 and pays $2,500 in tax, while Suzy earns $50,000 and pays $15,000 in tax. If Larry's income increases by $100, his tax increases by $12, but if Suzy's income increase by $100, her tax increases by $35. Calculate the average tax ra..
Southwestern Moving and Storage (SMS) buy a large-capacity trailer truck for $115,000 to provide short-haul earth moving services. SMS is planning selling the truck in seven years for a price of $45,000. Construct the cash flow diagram. Calculate the..
q1. markets left alone always tend to equilibrate that is find their way back to the equilibrium point. what is
Economic efficiency is one of the underpinnings of the arguments for a market economy. What does economic efficiency mean? Illustrate with supply and demand curves a point where a market is operating efficiently.
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