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1. An individual competitive firm's short-run supply curve is the portion of its marginal cost curve that equals or rises above the average variable cost. Explain why.
2. If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive industries?
3. Describe the demand and marginal revenue curves faced by a firm in a purely competitive market. Are they different from those faced by a firm in oligopolistic competition? If so, why?
4. Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behavior.
5. An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrangements?
Suppose that the interest rate is determined by; M/P=d1Y-d2i, where P is the price level, Y is real GDP and M/P is real money stock,
Take me out to the ballpark. It's nearly baseball time and baseball franchises are thinking about pricing their products. Assume a team sells three concessions: hotdogs, soda and nachos. For hotdogs, the average fan's MU for units 1, 2, and 3 is 1..
Suppose that the International Monetary Fund (IMF) is concerned about currency depreciation in a small open economy. a. What type of fiscal policy should the IMF propose to the government of the small open economy to generate a currency appreciatio..
Suppose you are asked to address a professional meeting and explain microeconomics, macroeconomics and their differences.
This increases the need for education in the economy as a whole because automation took away these jobs. Because of the increased need for education, more jobs were created and the education setting like universities have created jobs.
Illustrate what technology is used to catch them. What's wrong with America's economy, and is America's economic problem short term or long term.
As a production manager who understands the academic argument for free trade working in an company threatened by cheaper imports, how do you react.
Suppose we are at a long-run equilibrium point in an AD-AS model. Then the money supply falls. In the short run, is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the m..
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
In a recent speech, the governor of your state announced: "One of the biggest causes of juvenile delinquency in this state is the high unemployment among 16 to 19 year olds. The low wages offered by employers in the state have given fewer teenager..
Many companies are using computer mediated communication for training and updating their employees. They must choose the most effective and efficient manner of communication. Effective and efficient may be defined as achieving the communication go..
Discuss some polices the United States government could take to increase United States economic growth? Name two or three and describe why these would encourage growth.
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