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Describe briefly the likely effect of the following events on the aggregate demand curve:
a. A boost in research and development by computer companies produces more powerful and efficient computers and equipment.
b. Income falls in several countries that trade heavily with the U.S.
c. After a budget surplus, congress moves to cut personal income taxes.
What does this company do? What purpose does the company propose for the funds raised by the IPO?
Suppose Home economy produces 2 goods, Food and Cloth, using labor, land, and capital. Land is specific to the Food sector and capital is specific to the Cloth sector. Labor is the mobile factor implying that labor and land are used to produce Food; ..
Discriminating monopolists are able to charge different prices to different customers. In fact, a perfectly discriminating monopolist is able to charge.
Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?
An engineer has a fluctuating future budget for the maintenance of a particular machine. During each of the first 5 years, $1000 per year will be budgeted
Suppose the demand for beer is characterized by the following elasticities: • Own price elasticity = -2.5 • Cross-price elasticity with soda = +3 • Income elasticity = +2 Based on the given elasticities, answer the following. Explain your answers. Wh..
When conducting a rate of return (ROR) analysis involving mutually exclusive alternatives, the first step is to:
Consider a market structure where there is a monopoly in input market (upstream monopolist) and also there is a monopoly in product market (downstream monopoly). If each firm maximizes its profit then there is double mark up. Show that if these two f..
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetratio..
Suppose your $50,000 certificate of deposit (CD) matures and you transfer the funds to your checking account. Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unant..
Compare the characteristics of loans and marketable securities in terms of liquidity, risk, and information costs.
The republic of Oakland is recovering from a financial crisis that resulted in a fall is the GDP growth rate and widespread unemployment. The prime minister has set up a crisis Recovery taskforce to discuss measure that will receive the economy. Whic..
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