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An inflation shock is a disturbance to the usual behavior of inflation that shifts the IA line. A supply shock is a change in the natural rate of output. Graph the long and short run effects of a positive inflation shock and a negative supply shock in our IA-AD framework.
what level of output are your average variable costs minimized and at what level of output are your average total costs minimized?
Why does taxing a product lead to deadweight loss? Use an appropriate graph to explain why the deadweight loss is greater the more elastic the demand for a product.
As in part A there is a 50% chance the share market crashes. If John maximises expected utility, what value of ß should he choose?
Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).
What was Morita drawing and what did he know about costing that the chain store representative was overlooking? Be sure to describe or chart the shape of Morita's costing sketch in your answer.
Discuss why is increasing per capital income necessary but not sufficient for broadly dipping poverty and improving human welfare?
In a complex assembly operation, it is found that the learning curve rate is 70%. The standard time of 3 minutes per assembly is reached after the 110th unit. Find i. The time required for the very first unit.
Find the market price, the quantity produce and the profit of each firm and what is the number of firms in the long run equilibrium?
Do consumers of public goods have the same incentives to reveal their true valuations of Public goods as they do of Private goods? Why or why not?
Suppose that you have to charge a uniform price. That is you post a price and one canbuy as many units as one wishes at that price. What would be your price?
Using the following information complete the cash flow budget for the months of January, February and March. Be sure to include GST in the rows provided. GST at the end of December 2006 was negative $2500.
What total output must the cartel produce in order to maintain this price and to what output will an individual firm be restricted if this price is to be maintained?
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