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Real-Life Case Study: Entry and Exit of Firms in Industry
Entry and exit of firms: where have they occurred?
Go to the Census Bureau Economic Census, then Comparative Statistics, and then manufacturing (More data). Identify three manufacturing industries that experienced large percentage increases in the number of firms between 1997 and 2002. Identify three manufacturing industries that experienced large percentage decreases. What single factor is the most likely cause of the entry and exit differences between your two groups? Explain.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
Illustrate recommendations would you make to Congress and the President for the management of fiscal policy.
The socio-economic shortcomings that China experienced
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
Draw a graph of the market for banana. What are the equilibrium price and quantity? Explain why. If the price of banana was $1.50 a box. What would be the situation in the banana market (shortage or surplus)? Explain why and how the price and quanti..
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function
A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95.
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
You are the manager of a firm that manufacturers front and rear windshields for the automobile industry. Due to economies of scale in the industry
RainAway, Inc., makes polymers used to coat the windshields of car's, planes, and boats-Complete the following table based on the RainAway product's price, output and costs per year:
Assume that the economy starts in steady state. According to the Solow growth model, how would each of the following affect consumption per worker in the long run, Explain?
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