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Question 1
A) Assume you are a producer in a competitive market.
If taxes were cut by 1 trillion adn the mpc was .8 how much would total spending. Increase in the first year with two spending cycles? Increase over an infinite time perios?
Contrary to the assumption in part a,there was technological progress in the 20th century, i.e. the technology growth rate g>0. Suppose this rate of technology growth g is expected to be the same in the 21st century. Now let us consider the same ques..
Tech Engineering Inc. makes a consumer product for which the following cost data are available. Fixed cost/ year = $120,000 Variable costs/ unit = $15 Determine the breakeven volume if each unit can be sold for $40.
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. What is it about the petroleum industry ..
Ssuppose which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze as each additional cow has less grass to eat than the previous one.
Income tax Let’s now consider the case where government collects an income tax (is just tax on income, and does not depend consumed quantity) instead of quantity tax, and raises the same amount of revenue. Calculate own price elasticity of demand for..
Tamara's best friend, Janine, who had been having bad luck the past couple of years developing good relationships, finally meets the "man of her dreams." She has been dating him for several weeks. There is only one problem: this man is married. To fu..
Illustrate what are the consumer surplus, producer surplus and the social welfare in the market.
Which of the following goods or services are non excludable? Justify your answer. a) police protection b) streaming music from satellite transmission programs c) roads d) primary education e) cell phone service.
llustrate what happens to the money supply. Elucidate how would this change the incentive structure facing depository institutions.
Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod’s shop charges $65 for a repair, and last year the shop performed 5,000 repairs. Jarod’s production costs for the year included rent, wages, and equipment. Jarod spe..
Which of the following statements regarding a monopolist is false?
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