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What is a specific, "real-life", example of a seller in the United States today that meets the definition of a "competitive price searcher"? Your posting should be at least two paragraphs long and specifically identify the differentiated product (I am looking for a brand name this time!) that is sold by the firm you are describing (by name).
Graphically show and verbally argue that a Walrasian equiblirium in an economy is Pareto efficient as long as preferences are locally non-satiated. How about convexity? ?s it important for this theorem to hold ?
The Mag Transit owners see the change in profits from the price decrease in May and the projection for June. They decide to go back to a price of $10.00 and have 31,000 deliveries in June. Calculate the Elasticity of Supply. Is it elastic or inelasti..
Carefully explain why the following is either true or false. "In a 2*2*2 heckscher-olin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real ..
You are the chief economic advisor to the country of Utopia. Life is good in Utopia but people still suffer from the common cold and other ailments. The local Panacea Company has spent $1,000 developing a new drug called Nosnot that cures the common ..
Using the IS-MP diagram, explain what happens to the economy if there is a temporary consumption boom that lasts for one period. Initially, suppose the FED keeps nominal interest rate unchanged. Now suppose you were the chairman of the FED. What acti..
Explain how the quantity theory of money reaches the conclusion that the normal effect of an increase in the money stock is a proportional increase in the price level.
If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.
q.suppose a country the total holdings of banks were as followsrequired reserves 45 millionexcess reserves 15
Show that the following relation holds true sqrt((m - 1)/m) = (QE/Q*) = sqrt((m + 1)/m). What is the underlying reasons that this relation holds? Provide an interpretation of that relation.
Suppose a country has an investment opportunity that costs them 10 units of current consumption for an increase in 20 units of future consumption. The current and given real rate of interest is 10% (0.10). GDP, without the investment, in period 0 and..
Large-scale Russian farms have undergone some major changes, and these changes come in several forms. Which of the following is the most radical form of large-scale farm change that offers the greatest potential for efficiency improvements?
Examine the value of the US dollar verses the euro during the past two years. Why do you think the value of the US dollar has fluctuated? Why did the "gold standard" collapse. What do you think might happen if the IMF loosens its tight monetary polic..
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