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In Frictionlandia, the monthly job separation rate is s = 0.1 and the monthly job-?nding rate is f = 0.2 per month. A website that allows jobseekers to post their CVs online is established, which increases f to 0.35.
Now assume that s includes people quitting as well as being laid o? involuntarily. Do you think s will change after f increased? If we take the change in s into account, what is your (qualitative) forecast for the steady-state level of unemployment?
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the equilibrium price and quantity in this market.
During recent years, MicroChips Corp. has enjoyed substantial economic profits derived from patents covering a wide range of inventions and innovations for microprocessors used in high-performance desktop computers. Calculate the profit-maximizing pr..
Believe that they must be able to explain people's tastes in order to elucidate what happens when tastes change.
In the first chapter, we learned about the concept of specialization and comparative advantage. By learning these concepts, we tend to agree that specialization along lines of comparative advantage and then trade is beneficial. In your opinion, does..
Question 1: What prompted the new pricing plans in the case of Netflix and the debit card fee in the case of BankAm?
When patent protection expires for a pharmaceutical company, it forces changes within the company to adjust its business strategies from a monopolist position to a position that is much more competitive. What happens to the average total cost curve f..
Suppose you want to invest some money in the bank. Currently, the bank is paying a rate of 5.5% compounded annually. Assume inflation is expected to be 4.5% per year. After taking inflation into account, what is the real interest rate the bank paying..
In a Cournot duopoly with homogenous firm and down sloping market demand, In a Bertrand duopoly with homogenous firm and down sloping market demand,
Extensive growth is driven by
Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by $2 million?
If JMJ Industries realizes a profit of $4 per unit sold, what is the fixed cost portion of their production costs? Their variable costs are $1.50 per unit, and they sell 1,000 units per year at a price of $6 per unit.
Massive Products, Inc., is a monopolist whose cost of production is given by 10Q+Q2 (so its marginal cost curve-equivalently, its inverse supply curve - is give
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