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Question 1. Draw a production possibility frontier, clearly marking the regions of inefficient production, efficient production and unattainable production.
Question 2. Illustrate how the slope of the PPF represents opportunity cost. Why is the frontier concave to origin?
Question 3. Examine the ways in which a business might use information about the different elasticities of demand for its product in its decision making.
Aim: How does the Federal Reserve or Monetary Policy impact the economy? Topic: Money Multiplier and Exchange rate
Illustrates your local electricity company’s natural monopoly. The diagram shows the demand curve for kilowatt-hours (kWh) of electricity, the company’s marginal revenue (MR) curve, its marginal cost (MC) curve, and its average total cost (ATC) curve..
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations. Also, discuss the differences between economies of scale and economies of sco..
The museums operated by the US Art Services department have suffered from substantial losses for past years. The price elasticity of demand for the museums is estimated to be 0.6. If the US Art Services department would like to increase its total rev..
The concept of Mutually Assured Destruction (MAD) is cited by many scholars as the mechanism that kept the peace during the Cold War. However, that does not mean the concept was not problematic. Was the United States government actually protecting it..
Recently there has be a drive to increase the production of alternative fuels from corn. The argument used by many is energy self sufficiency. In light of the desire to reduce our use of foreign produced oil, many have suggested we should subsidize t..
Consider a new per-worker employment tax on workers (where previously there was no tax). outline the consequences of this tax on the local labor market. use appropriate, clear and well labeled diagrams.
Everyone's Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
Show that the law of diminishing marginal productivity holds for the production function Q = 12K0.4L0.4. Will the MPL schedule take the shape shown in Figure?
Describe a situation in which a poor alternative was selected because there was a poor search for better alternatives.
A monopolistically competitive firm faces the following demand curve for its product: The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit.
Since Brexit has happened will Britain be allowed to sell chocolate within the European Union? What sort of tariffs might be imposed if they are allowed?
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