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In recent years, consumption spending by households has accounted for about 70% of the total spending (aggregate demand) in the U.S. economy. There are 5 determinants that might shift the consumption schedule of the economy, household wealth; household expectations; the real rate of interest; household debt; and taxes. How do you believe they are affecting the consumption schedule of the U.S. economy today (2009)?
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
Explain why this strategy may in fact, be rational Also, identify at least two other strategies that might permit Argyle to earn higher profits.
Illustrate the economy's adjustment to its long run equilibrium only, as the formerly dislocated (and now retrained) labour force is finding employment in new industries.
The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Two executives were arrested by authorities for embezzling money for their firm. Short of confusion the only had enough evidence to put them away for 10 Years.
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Draw a graph showing hte above situation. Include in that graph, the monopolist's cost curves, demand and marginal revenue curves and the price and quantities that are indicated by the situation described above.
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
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