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Industry studies often suggest that firms may have long - run average cost curves that show some output range over which there are economics of scale and wide range of output over which long- run average cost is constant; finally, at very high output, there are diseconomies of scale.A. Draw a representative long-run average cost curve, and indicate the minimum efficient scale.B. Would you expect that firms in an industry like this would all produce about the same level of output? Why?
Suppose the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to the aggregate demand.
A firm producing hockey sticks has a production function given by Y= \(2\sqrt{KL}\) in the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental-rate of capital is $1, and the wage rate is $4.
Explain the difference between demand pull inflation and cost-push inflation, illustrating your answer with examples of each
Illustrate what should the Fed do in inflation continues to fall and eventually starts to become deflation.
Brokers incurred $450,000 out of expenses as well as will give 21,000,000 of the persue to the small firm they are underwriting
Suppose that the town council needs to raise $300,000 in revenue and decides to do this by taxing the cigarette market. What should the excise tax be in order to raise the required amount of money?
Illustrate what is the relationship between the trade situation, the value of the dollar, the national debt and the budget deficit/surplus.
Since January of 2001 the Fed has reduced its Fed funds rate target from 6.5 percent to 1 percent. Nonetheless, the number of people at work is less than
If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you expect these policy changes to impact the economy?
Explain her change in consumption in terms of income and substitution effects (give a precise quantitative answer). Is this a Griffin good (how do you know)?
Diffentiate among short-run and long-run and consider the role of expectations.
A monopolist sells in both Milwaukee also Cleveland and has identical marginal price of 8 in each market.
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