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a) Sometimes it is said that producer theory is similar to consumer theory. In what ways are they similar?
b) Describe in words what a production function is. Which variables are typically inputs?
c) What is the difference between the short and the long run?
d) What does "returns to scale," mean?
assume the economy is at short-run equilibrium and is in a slump. ceteris paribus what would you expect to happen to
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined before the loan was fully repaid.
Define what we mean by money and how it is used in the day to day functioning of the U.S. economy. Be sure to include the major components that make up what is defined as money and which of these components is used most widely to identify what money ..
The federal government recently ran a budget surplus, but has since returned to running a budget deficit. Explain why reducing the budget deficit can cause short-term pain in the form of lower employment, higher unemployment, and a recession.
Consider an auctioneer who is selling an item through an auction. It is known that the 25 risk-neutral bidders have affiliated values that are distributed among $0 and $500 million. Based on this information, the auction type that will maximize expec..
How to mitigate effects of very fast transients (VFT) on HV equipment ?
What will happen to a country that fixes the price of foreign exchange below equilibrium? What factors will shift the supply and demand for currency? What are the three categories of transactions in the balance of payments? Give an example of each.
assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision
For this week, we are continuing our discussion on GDP and economic growth. We will realize that most of government spending goes towards welfare such as social security. However, it is a common belief that social security benefits
Suppose instead that the goverment wished to raise GDP to 7,100, but it was unwilling to run a surplus or deficit. Therefore the change in government purchases would have to be matched by and equal change in taxes. What change in government purcha..
your mathematics and economics professors have decide to give tests 2 day from For each addition 3 hours study time for one of the subjects, your grade will increase one letter for that subject.
Suppose a monopolist operated in an industry where the market demand is perfectly elastic (with inverse demand given by P = 30 and its cost function is T C = 100 + Q + Q^2 . calculate profit maximising P and Q. Would this be any different if the ind..
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