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Suppose an individual demand curve is given by P = 100 - 5Q, where P is the price of smoothies and Q is the quantity she consumes. Assuming her income per week is $1,000 and the current price of smoothies is $5 each, by how much will her consumer surplus decline if the price of smoothies increased to $10 each? First diagram your answer by plotting the above demand curve and then determine the dollar value of her loss in surplus.
If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports - what is the country's GDP for the year?
q. use the subsequent demand schedule to determine total also marginal revenues for each possible level of
A competitive firm has the following cost function: The firm believes the market price for thier product will be $12 with probablility 0.57. Otherwise, they believe the market price for thiepr producet will be $15. Find the firms expected profit.
Which of the following statements is true about performing a manufacturing activity in several locations at once? A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high. Perform..
In "Preventing a Brave New World" (pp. 331-343), Leon Kass concludes that reproductive and therapeutic cloning of human embryos is unethical. What are the exact steps in Kass's argument for this conclusion? What is your assessment of the strengths an..
Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and requires a variable cost of $150 per lawnmower; What is the break-even quanti..
Suppose an environmental regulation requires all polluters to reduce emissions by 50%, even though the cost of pollution control differs widely from one polluter to another. Why might this be inefficient, using the definition of efficiency developed ..
The discussion on price ceilings supposed that the medical industry faces increasing marginal costs of production. Suppose a for-profit, monopolistic hospital is experiencing economics of scale ( i. e.., downward-sloping average and marginal cost ..
Which best describes a credit default swap? A) It is designed to reduce interest-rate risk. B) The issuer receives payments from the buyer in return for agreeing to make payments to the buyer if the underlying security goes into default. C) Issuers a..
You are creating an online shopping company for winterwear where you make your own product and sell it online and the company ships internationally, production is done in developing country for cheaper production. You need to write a business plan fo..
What do we know about the proportion of peanut butter to jam held by Bob in any equilibrium? If Adam held all of the peanut butter in the initial endowment, is it possible that he end up with nothing in the equilibrium?
Explain how "discretionary fiscal policy" can be "countercyclical" and can be used to support aggregate demand. Us an AD/AS model to support your answer.
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