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How can you justify the existence of government-granted monopolies for public utilities such as natural gas distribution and electricity in the light of traditional economic argument that the more competition there is, the more likely it is that an efficient allocation of resources will occur?
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
In the country A, all wage contracts are indexed to inflation. That is, each month wages are adjusted to reflect increases in cost of living as reflected in changes in price level. Explain answer with aggregate supply and aggregate demand curves.
The ending benifit if any should be realized in CAD. How can he complete interest arbitrage. What will be his profit.
Assume a 2 sector economy (where the two sectors are consumption and investment) where C= $100+ 0.9 Y and I=$50
Adopt a first-degree price discrimination policy, what prices should you charge to maximize revenues and what are the revenues?
The Internet boom of late 1990s was hailed as the four advent of a new economy: that would radically alter the face of business companies. By 2002, however, it was clear that new economy had not arrived on schedule.
Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
How will the programs proposed affect future growth possibilities for the economy (how will they effect the PPF and long run aggregate supply)?
The definition of a price maker is a firm with some power to set the price beacuse the demand curve for its output slopes downward, which is effect, means those firms with a downward sloping demand curve have have some market power.
Why do some stores offer senior citizen discounts on Tuesdays? Senior citizens have perfectly inelastic demand curves, whereas other shoppers do not.
If you increase the vakue of your goods but sell more units is this a violation of the law of demand and how could input suppliers ever lower your profits?
Suppose you are running a photo copy center that makes illegal copies of the textbook. An illegal copy of the book sells for $10 and you only have one copy machine.
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