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A newspaper article once reported that the U.S. economy was experiencing a low rate of inflation. It said that "low inflation has a downside: 45 million recipients of Social Security and other benefits will see their checks go up by just 2.8 percent next year."
A) Illustrate why does inflation affect the increase in Social Security and other benefits?
B) Is this effect a cost of inflation, as the article suggests? Why or why not?
Elucidate the relationship among scarcity, choice and opportunity cost in the context of managerial economics.
Elucidate the opportunity costs for the manager of being in this business relative to returning to his old job. what is the economic profit of the business.
Explain why perfect personalized pricing is typically more profitable than menu pricing.
Elucidate how much the equilibrium quantity of wheat sold. Elucidate the actual cost which is equal to the equilibrium cost.
A recording company obtains the following information about the demand and production costs of its new.
What would be additional effects follow from this initial effect. What is the total effect of the tax cut on aggregate demand.
What assumptions do you make answering this question. Elucidate distortions do you think would appear in the economy if such a tax were introduced.
both the short run and the long run assuming that the government takes no action in response to the oil price increase.
For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising.
The developing country uses the $100 bank balance to import $100 worth of food from the United States (US).
If the Bank of Canada sells 100 million worth of bonds to the public in an open market operation. What level of output will the firm choose? Is the firm making a profit.
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
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