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If a firm adopts a production process that is costly in order to reduce pollution, the results
a. a decrease in the firms MC curve and a decrease in the firm’s profits
b. an increase in the firms ATC curve and an increase in the firm’s profit
c. a decrease in the profit maximizing rate of output and a decrease in the firm’s profits
d. a decrease in the firms ATC curve and an increase in the firm’s profits
Based on the standard labor demand model, in the long run, what do you expect to be the scale and substitution effects of a decrease in r (the price of capital) on the amount of labor demanded? What is the predicted total effect?
What would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound.
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
Assume the firm is operating in a high-wage country, where capital cost is $100 per unit per day and labor cost is $80 per worker per day. For each level of output, elucidate which technology is cheapest.
Bright horizons a monopoly firm, offers a selection of light bulbs for sale. The product costs c = $40 to produce. The product may fail with probability 0.2, hence it is fully operative with probability = 0.8. This probability is public information i..
Supposes cost of consumer market basket rose from $200 in base year to $225 in current year. Calculate CPI in current year and percentage change in prices between base year and current year.
Bill borrowed $10,000 to be repaid in quarterly instalments over the next 7 years. The interest rate he is being charged is 11.76% per year compounded quarterly. What is his quarterly payment?
At the equilibrium values, determine the price elasticity of demand. What does this number tell us?
The market demand function is Q=80-p. Describe the profit maximizing input use, the output price, and the monopolist's profit.
Are cyclical fluctuations necessary for economic growth?
Using two-stage least squares, estimate the demand equation in GRETL. Using two-stage least squares, estimate the supply equation in GRETL.
What is the current unemployment rate? What is the current unemployment rate for women? What is the current unemployment rate for men? What is the current unemployment rate for high school graduates with no college degree? What is the labor for parti..
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