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Suppose you own a car wash and that its total cost function is C = 20 + 2Q + .3Q^2 where C = total cost in dollars per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed.
A. Derive the firm’s short run supply curve?
Use this information to find the Equilibrium Price, Quantity and Revenue in the market.
Expansionary policy is used to fix an expansionary gap. If US prices are relatively high, the quantity of US goods demanded is high, aote. The short-run AS curve overall has a positive slope in part because of the misperceptions.
Explain how "history" affects ability of firms in this game to achieve an outcome superior to that of one-shot version of game.
Suppose the Quick Towing Company purchases a new tow truck. The old truck had a book value of $1,000 and was sold for $1,420. If Quick Towing is in the 34 percent marginal tax bracket, what is the tax liability on the sale of the truck? What is the a..
There has been extensive discussion of the "wealth effect." The argument goes that inflated stock values were partially responsible for the strong U.S. economy of the 1990's. Explain this linkage in words and then illustrate with an Aggregate Demand/..
What must happen to induce foreign residents to buy the bonds? If foreign residents desire to purchase the bonds, what is the most important source of dollars to buy them?
Explain why an economy's income must equal its expenditure and why is it desirable for a country to have a large GDP? Give an example of something that would raise GDP and yet be undesirable.
Provide examples of different tools businesses use to identify the elasticity of their different customers. Also elucidate how the financial aid department determines student elasticity.
Illustrate what import also export means also give one example of every in fashion area. Conduct a test of hypothesis to conclude whether the mean attendance was more.
Suppose that in year 2008, the money supply is $400 billion, nominal GDP is 9 trillion, and real GDP is $4 trillion. Illustrate what is the price level. What is the velocity of money.
Assume there is a central city school district in which the student population is predominantly black. What will there be a salary differential between black and white teachers.
What price would firm set to maximize profit. Compute profit and Consumer Surplus.In diagram given above blue shaded region is consumer surplus and green shaded region is deadweight loss.
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