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Explain, with the aid of diagrams, the economic impact on a firm if it discovers a more efficient technology for the production of its good or service. Use the cost curves and product curves as the basis for your answer.
Show long run effect on In Phillips curve diagram. If expectations are rational and increase in money growth is announced, what happens to In short run.
Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent.
Firms 1 and 2 produce horizontally differentiated products. The demand for firm 1's product is given by the equation,
What is out-of-sample prediction? Say you had 500 time-series observations and would like to determine how well your model is performing. How would you suggest obtaining an out-of-sample prediction?
What do you think will cause market fluctuations over the next few years as the economy struggles to recover? What areas of the economy should be closely watched as indicators of future activity?
Figure 4-6 shows that a payroll tax will be completely shifted to workers when the labor supply curve is perfectly inelastic. In this case, for example, a new $2 payroll tax will lower the wage by $2, will not affect employment, and will not result i..
Sarah bakery makes 1000 items a day. Each day Sarah contributes 8 hours to produce those items. If hired, elsewhere Sarah could have earned $250 an hour. The item sells for $15 each. Production does not stop during weekends. If the explicit costs tot..
Assume the wheat industry starts out in the long-run competitive equilibrium. Using appropriate diagrams show how this would look like at both the industry
Also will the LAC for the firm be upward slopping, downward slopping or a horizontal straight line?
Why the firm should hire more labor if the marginal product of labor is 75 unit of output and the wage is $15 and output sells for $0.80 per unit?
What is the smallest integer-valued annual compound interest that will result in an investment tripling in value in less than or equal to 12 years?
1. Growth accounting shows that technological progress is an important source of economic growth.
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