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Economic theory states that as more firms enter, prices, output and profits per firm decrease. Use the n-firm Cournot model to explain why this occurs
Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security ..
Larry, Curly and Moe run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Curly wants the saloon to bring in as much revenue as possible. Moe wants to make the largest possible profits.
Suppose Natasha currently makes $50,000.00 per year working as a manager at a cable TV company. She then develops two possiable entrepreneurial business opportunities
Explain what happens to the economy's monetary base when the Bank Negara Malaysia sells RM800 million in foreign currency to one of the banks operating in the country.
Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
To maximize total income should the price be increased or decreased
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?
Polly's Pet Store on the Island of Atlantis has a local monopoly on the grooming of dogs. There are 1,000,000 citizens of the Island of Atlantis and 75% of them love and want dogs, but there are only enough dogs on the island for 25% of them to ha..
Considering factors such as food supplies, population growth, water availability and renewable energy, compare the marginal costs and the marginal benefits of global warming and describe what an ‘environmentally sustainable' economy would be.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Joe enjoys fishing & goes out about 20 times per year. One day, Sara told him that fishing is too expensive of a hobby. She thinks he should stop going because she calculated that it costs about %28.75 for every fish he catches because he usually ..
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