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Frisbee manufacturers persuade the government that Frisbee production improves scientists' understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor $2 above the equilibrium price. What is the new market price? How many Frisbees are sold?
Two dry cleaners are located on a street of length. The firms do not make the same profit, verbally describe why this is the case.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Assume a firm has a patent on one of its products whose sale generates $32,700/year more revenue than production costs. If the annual interest rate is 20 percent, what is the market value of this patent.
Clearly evalute at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Cameron visits a sporting goods store to buy a new set of golf clubs.
The steel industry has been lobbying for high taxes on imported steel. Russia, Brazil also Japan have been producing also selling steel on world markets
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what happen to interest rates if the public believes him.
What do you think that Apple's ability to control the pricing of downloaded song is likely to change in the future.
Advanced analysis) Answer the next question(s) on the basis of the following consumption schedule: C = 20 + .9Y, where C is consumption and Y is disposable income. REfer to this data. At an $800 level of disposable income, the level of savings is:
A social scientist claims that the average adult watches less than 26 hours of television per week.
Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
Changes in the macroenvironment affect individual firms and industry through the microeconomic factors of demand, production, cost and profitability.
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