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For market equilibrium to generate the largest possible surplus and thus be efficient, which condition(s)must be met?
a. Marginal benefit must be greater than marginal cost.
b. Marginal benefit must be less than marginal cost.
c. Marginal benefit must be equal to marginal cost.
d. Total producer surplus must be minimized.
e. Total consumer surplus must be maximized.
A securities analyst claims that, given a specific list of 6 common stocks, it is possible to predict, in the correct order, the 3 that wil perform best during the coming year. What is the probability of making the correct selection by chance?
Why can not one nation have a comparative advantage over another country in the production of everything if the first country has excellent natural resources
Discuss and explain the relationship between the level of GDP and economic well-being. What factors of well-being are missing from the GDP?
7.Consider a small open economy that uses peso as a national currency and allows it to float against foreign currencies. Suppose that the price level includes the peso prices of domestic goods and the peso equivalent of the dollar prices of imp..
What two conditions are required for effective competition in a market? How does competition limit the abuse of economic power by self-interested individual buyers or sellers?
Explain how you think macro-economics applies to Walmart. What would it contribute to your understanding of this organization's prospects.
Find the coef?cient vectors alpha and beta for the trapezoidal method. Find also the stability region of the trapezoidal method.
Suppose you have $7,000 in savings when the price level index is at 100.then what is the real value of your savings if the price level declines by 10 percent.
1. Assuming that the economy's MPC is 2/3 and that the government spending increases by $20 billion, what would be the impact on the equilibrium level of GDP? 2. If the economy's MPS is .2, what is the multiplier? 3. Given the following table that ..
the abc company has contracted to make the following payments 10000 immediately 1000 at the end of year 1 1500 at the
Markets do not allocate resources efficiently in the presence of market failures such as market power and externalities. With relevant examples, explain why each type of market failure may cause market outcomes to be inefficient.
Time Magazine and Newsweek are two competing news magazines. Suppose that each company charges the same $5.00 price for their magazines. What is the Nash equilibrium for this sequential game?
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