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The United States has gone through a prolonged recession since 2007. How has this economic crisis affected the position of the United States in the global economy?
Kathy's Bakery is a local full-service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. Assuming average variable costs are constant at all output levels, what is Kathy's total ..
Why is popcorn so expensive at the movies? Argue both that a high price for popcorn is price discrimination and then argue that it is not price discrimination.
Find the output levels where total product and average product are maximized. What is marginal product when total product is zero?
Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate (besides any mentioned in the text). Select an economic phenomenon and determine which of the models d..
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm’s total costs are C(Q) = 50 + 12Q + 2Q2. How much output should the firm produce in the short run? What price should the firm charge..
According to the description of business fixed investment in this chapter, how would you expect a firm’s investment decisions to be affected by a sudden increase in the demand for its product? What factors would determine the speed of its reaction?
Suppose the demand for Digital Video Recorders (DVRs) is given by Q=250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television. How much does Q change if the price of cable ..
Suppose a person lives for two periods (working life and retirement) earning $30,000 in income in his working life, during which he consumes or saves for period a. What is saved earns interest of 10% per year. Draw this person’s intertemporal budget ..
Write the numerical formula for the LM curve? What is the equilibrium level of r?
What does the Federal Reserve do to stimulate the economy? What does the Federal Reserve do to contract the economy? What motivates policymakers to stimulate the economy or contract the economy?
three arguments used to promote trade barriers are the national security argument the infant-industry argument and the
Fill out the following table for the short run for K=8. MPL refers to the marginal product of labor; MRPL refers to the marginal revenue product of labor. Using the rule MRPL = pL, find the profit-maximizing number of workers for the firm to hire fro..
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