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1. A. Explain the main differences between demand-pull inflation and cost-push inflation.
B. Analyze the differences between cost-push inflation and built-in inflation.
2. A. Does the official unemployment rate understate the “true” degree of unemployment in the United States?
B. Assume that you owe $5,000.00 to Capital Bank. Would you gain or lose from an unanticipated decrease in inflation?
If the two firms each maximise profits independently, explain how much output would each firm produce. Explain how much quasi-rents would each factory earn.
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. What is it about the petroleum industry ..
illustrate what is cost of each combination. Illustrate what is minimum-cost combination. Plot iso-cost curves and isoquant, explain how cost-minimizing combination.
The market demand curve is Q = 38 -P. There are two firms: firm1 and firm 2. One has MC=2 and the other has MC= 5. They choose outputs simultaneously (the cournot model).What output is chosen in equilibrium
Alice maximizes expected utility with an index u(x) = √ x where x is the total annual income. Her annual wage is $90000 and she gets an extra bonus of $70000 with probability 0.5. Alice’s certainty equivalent of this gamble is
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 18,000 -5Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF.. What is the follower’s reaction function? Determine t..
Suppose that legalizing the use of marjuana would decrease its price by 93%. If the price elasticity of demand for marjuana is -2.00, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana? _______ perce..
Think of some other real-world examples where the competitive hypothesis is violated. What would need to be added to the basic supply and demand model to accurately predict what people do when they aren't sure
For the Portfolio Project, students will conduct an analysis of a recent article and provide their evaluation and outcome expectations in a written paper of 1500-2500 words that discusses APA format and reference sheet needed.
A natural monopoly has an incentive to pad its cost of production under which type of regulation?
The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
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