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A) Suppose that you are trying to determine the after effects of hurricane Katrina on the economy of Louisiana.
Which assumptions could be made to simplify the study?
1) Consider the effects on all of Louisiana’s interstate trade partners.
2) Determine the effects while holding the infrastructure and factors of production constant.
3) Compare the change in prices for all goods
4) Track the total net worth of the output produced by the state prior to the hurricane and after the hurricane.
5) Focus on just the crawfish and catfish farming industries in Louisiana.
What can you conclude about the firm's use of its resources versus other options (or alternate uses)?
If there are 12 identical firms in this industry and the market demand curve is given by QD = 360 - 2P, what is the short-run equilibrium price?
q.assume the working income tax benefit tops up a single individuals income by 25 percent of the amount that employment
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