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Consider a farmer who can either plant or market/consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from 2 ears of corn, he gets 4 ears of corn at harvest. Assume he starts off with 50 bushels of corn.
a. If he decides every year to market/consume half his crop and plant the rest, what will his harvest be next year? What will his consumption be? How fast will his production and consumption grow over time?
b. If he decides every year to market/consume 2/5 of his crop and plant the rest, what will his harvest be next year? What will his consumption be? Illustrate how fast will his production and consumption grow over time?
c. Compute the consumption of the farmer in each of the first five years under plans a. and b.
d. Why might the results of plan b. not be realistic?
Indicate how Ford's management should use this information to make sound strategic decisions.
As part of their chores on Saturday mornings, they have to clean the bathrooms also wash the floors of the house while their parents go grocery shopping.
If the government purchases also taxes are both increased by $100 billion simultaneously illustrate what will the effect be on equilibrium output.
Suppose the government decides to increase taxes by $40 billion in order to increase Social Security by the same amount. Explain how will this combined tax-transfer policy affect aggregated demand at current prices.
Does player 1 have a dominant policy also if so Illustrate what is it or does player 2 have a dominant policy also if so Illustrate what is it.
Some economists argue that it is possible to raise the standard of living by reducing population growth.
If the average employee compensation grew at the rate of 3.5% per year, explain how many years would it take for it to double.
Explain how that the balance sheet balances if these are the only assets and liabilities.
At the profit-maximizing quantity, what is the average total cost of producing e-books.
Illustrate what does this mean for the survival of small firms in the industry.
A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%.
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
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