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Discuss briefly the supply schedule and the various factors affecting the supply in the market.
A particular economy has consumption of$400 million, a government deficit of $100 million, taxes of $250 million, and income of $800 million. Which of the following statements must be true?
In Akerlof’s lemons problem, with symmetric information, suppose that 5 cars are available in equal quantity and with quality levels 0, 1, 2, 3, and 4. Suppose the sellers have a reservation price of $2,000 per unit of quality, and the buyers value c..
Show the profit-maximizing price and quantity. Show the producer and consumer surplus. Show the deadweight loss from monopoly. What is the implied competitive equilibrium? Is the firm operating at a profit or a loss (how do we know)? If it’s operatin..
Suppose the market demand and supply functions are QD = 220 - 1.6P and QS = 4P - 116. You have just graduated and moved to this city
How does monetary and fiscal policy affect aggregate demand?
What is a definition of externalities. How does the presence of an externality distort a normal free market?
Golden Engineering is a small firm with a cash flow problem. The owner is planning on putting the monthly travel costs of $4000 on his corporate credit card
Discuss the impact of major accounting/financial scandals on investors’ asset preferences. In your opinion how do the scandals affect foreign markets? Discuss two macro variables that affect changes in interest rates/or markets. If you watch these va..
In at least three well composed paragraphs, please describe the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).
You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. How much will this process impro..
1. Sales of cars declined by 15 per cent in a recent recession. During this period the price of cars rose by 6 per cent, average income fell by 4 per cent and the price of petrol rose by 20 per cent. It has been estimated that the PED for cars is - 0..
In long-run competitive equilibrium, product price equals long-run average cost and also equals long-run marginal cost. Thus, economic profit equals $0. Please explain why firms have not incentive to exit the industry.
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