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Q1. Illustrate what is a random walk? Explain how is Hall's random-walk model of consumption related to the life-cycle (LCH) and permanent income hypotheses (PIH)?
Q2. To increase a company's performance, a manager suggests which the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect. Q3. A. Illustrate what is Tobin's q, and illustrate what does it have to do with investment? Explain how Tobin's q is can be related to the neoclassical model of business fixed investment?
B. Assume a loss in the export sales reduces GDP which causes a recession. Discuss which Explain how drop in the export sales sets in an ongoing recession using accelerator model.
Briefly discuss the impact of rational self-interest on each of the following decisions. Whether to attend college full time or enter the workforce full time.
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.
Explicate how these projected deficits will affect the US Stock and bonds. Could you explicate briefly this question thank you.
There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.
A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice reven..
Describe how each of these activities affects government, households, and businesses. Illustrate flow of capital starting from one entity to another for each activity.
Government encourage a decision to expand? How would it affect the reputation of the business?
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
Two dry cleaners are located on a street of length. The firms do not make the same profit, verbally describe why this is the case.
What would you do if patent law prevented your rival from cloning your product.
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