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According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's service is cheaper than MCI's. Suppose that the typical consumer is a small business, Woodbrook Electronics. Woodbrook uses MCI as their long-distance carrier and currently places 100 calls per month. MCI charges a price of $0.80 per phone call. Woodbrook used to subscribe to AT&T and placed 90 calls per month at AT&T's old rate of $.90 per phone call, but switched to MCI to take advantage of the lower price. Based on this data, estimate the equation for Woodbrook's demand assuming it is linear.
Consider a positive AD shock hitting the economy. Draw an AS/AD diagram and show both the short-run and long-run effects of the shock. And then, explain step by step the adjustment process after the shock, i.e. both the short run deviation from LRAS ..
Suppose that in response to a foreign crisis, the government increases defense spending by $50 billion. How would the increase in defense affect the economy? How would the effects differ depending on the size and sign of the output gap when the cr..
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
What variable adjusts to make the quantity of money held equal to money supplied?
q.social regulation is undertaken with the intention of improving the quality of life. the agencies most people are
q. airways express has an evening flight from los angeles to new york with an average of 80 passengers and a return
There is one scenario where the unemployment rate would probably be underestimated due to the discouraged worker effect. One where the rate would probably be underestimated due to underemployment.
If a country desires to have stable prices (or low inflation), why not simply pass a law that prohibits firms from changing prices? Elucidate pros and cons associated with this case.
In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. Cite as many examples as you can of these types of businesses.
The very recent past in Latin America suggested at least the possibility of a swing back toward populism. Research this question and decide whether current populism in Latin America is similar to past populist movements, especially by comparing econo..
q1. rich has 100000 and poore has 1000. which of these statements is most strongly supported by the theory of consumer
What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy? How does each policy affect the AD in the economy? What are the benefits and major problems ..
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