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Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $20/month. Producing q gallons of honey in one month requires spending 5q dollars on bees, and 4q^2 on sugar. Let Q be the total market supply, and q is the supply of an individual firm. Therefore, q=Q/n where n is the total number of firms in the market. Suppose the demand for honey is given by Q=512-4P. Also, suppose there are 50 honey producers in the market. What is the equilibrium price of honey? How much profit does an individual producer make in a month?
Elucidate each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.
Compute market price, quantity of wheat produced, and the new equilibrium number of farms in this new situation.
What performance % would you use to trigger executive bonuses for that year.
Illustrate what is the risk premium on the market. Illustrate what is the required return on an investment with a beta of 1.5.
Elucidate the price also quantity that maximizes the company's profit.
Suppose that U.S. citizens start saving more. What does this imply about the supply of loanable funds and the equilibrium real interest rate. Explain what would happens to the real exchange rate.
Manufacturers begin building a new plant in Arizona. Which determinant of cumulative demand causes the change.
How should labour be allocated between x and y to satisfy the demands calculated in part.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Illustrate that this is an indirect or a direct rate. If the forward rate is an accurate predictor of replacement rates.
Give an example of a product you consume for which your marginal utility increases with the amount of your consumption
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,
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