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This unit has talked largely about economies of scale at the plant or unit level. What do you see as the difference between the unit level economies of scale and the firm multiple plants, movie theaters, restaurants, etc. Is there a clear distinction between economies or dis-economies at the unit level and the firm level? Explain
Explain basic idea behind Big Push model. How can O-ring theory help explain existence of a low-level equilibrium that an economy may find itself.
Evaluate the performance of using the composite index of leading indicators in forecasting the recession in the U.S. (you may need to search additional information for answering this question).
What are five challenges China’s economy faces as its leadership tries to change the source of growth from exports and public investment to consumption? Why might a slowdown in China’s economy not pose serious problems for the U.S. economy?
Consider an economy where 1999 is the base year used for all calculations of price indices and constant-price aggregates. The price of the average good counted in GDP was 5% higher in 1997 than in 1999 and real GDP in 1997 was $64,800. In 1998 the ra..
Suppose the following system of equations: MAC = 60, 4E, MD = 2E, where E=level of emission per month. Solve for socially efficient equilibrium. Show it graphically. Compute total damage (TD) at this equilibrium.
A college economics lecture in a classroom is
Consider the case of a corn producer. This producer is a monopolist in the corn market. Since corn production uses significant amounts of fertilizers, it negatively affects the environment. Recall that, when a firm is a monopolist, it reduces its pro..
One of the fans at this game believes in the Law of Small Numbers. She has the wrong model of how likely Curry is to make a basket. Here’s how her model works. The fan imagines that there is a deck of 4 cards. When Paul is Hot, 3 of these cards say “..
Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts $80 billion to the left. The government wants to change spending to offset this decrease in demand. The MPC is 0.75.
Why is the concept of elasticity important? What does it tell economists? Tell whether you would classify automobile production as either elastic or inelastic in the short run and long run. (Keep in mind that we are talking here about supply elastici..
Identify an economic issue that both parties address and compare and contrast their views on that issue. Generally speaking, how much of the disagreement is based on normative economics compared to positive economics?
wicksteed made a significant contribution to value theory during the marginal utility revolution. this contribution was
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