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Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does budget depend on the marginal propensity to consume?
One of major political developments of last many decades is the increasing size and economic or monetary integration of the European Union. Determine what effect do you think this will have on international trade between nations?
Level of GDP per effective worker and explain whether this economy is following the Golden rule
a. If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six? packs of beer? b. Write out a utility function to represent these preferences.
Southeastern Bell stocks a certain switch connector at its central warehouse for prividing field service offices.
The Microsoft trial has been only one of the biggest investigations of antitrust behavior as the turn of the century.
How would use the principle of marginal analysis to make a decision.deciding how many days to wait before doing your laundry, deciding how many bags of chips to eat or else.
Now suppose this game is to be played an unknown number of times. Both firms know that there is a probability .1 that the current play of the game will be the last time the game will be played. So there is a probability 1.0 that the game will be p..
Robot X has a first cost of $84,000 an annual maintenance and operation (M&O) cost of $31,000, a $40,000 salvage value, and will improve net revenues by $96,000 per year. Robot Y has a first cost of $146,000 an annual M&O cost of $28,000, a $47,00..
Assume that x1 and x2 can take any value (0,1,2,3,4,5). The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. Derive the strategies that survive the iterative deletion of strictly dominated strategies.
After Iraq invaded Kuwait, gasoline prices increase dramatically--up to 50 percent. There were many effectrs of the increased price of gasoline.
Consider the case of a regulator and a single polluter. Suppose the regulator knows the marginal damage from pollution but is unsure about the firms marginal savings from emitting. The regulator asks the firm to reveal its marginal savings from em..
Suppose a small city dry-cleaning market, which is monopolistically competitive. Currently, the typical dry-cleaner is charging $5 an product.
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