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Determine what fiscal policy measure has a more direct impact to the economy:
1. An increase in government spending or
2. An equal decrease in taxes if consumer confidence is lower than the previous month.
What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day?
Marginal rate of substitution increases as he or she consumes more of a good.C. the law of diminishing marginal utility holds.
Using the principles of supply and demand, develop a plan to alleviate the shortage of Math and Science teachers within this country. Try to use price and non-price determinants as your tools to reach equilibrium.
Consider the price-taking firm in competitive industry for raw chocolate. The market demand and supply functions for raw chocolate are estimated to be
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a value so high that there is no demand for the good.
Discuss the current monopoly to provide a brief overview of the company. How did the monopoly arise? Did the monopoly increase barriers to entry? Does the company behave like a monopoly or more like a competitive firm?
What is the law of diminishing marginal productivity? How does it differ from average productivity?
What is the approximate Herfindahl index? What is the four-firm concentration ratio?
A firm produces a product with a fully allocated average cost equal to $20. If the price elasticity of demand for the product is -5,what should the product price be set at?
Use the first order conditions for profit maximisation to show that a monopolist will never produce on the inelastic portion of his demand curve.
What factors would cause a firm to decide to buy intermediate products needed for production of its final goods or services?
A manager hires labor and rents capital equipment in a competitive market. The current wage is $6.00 per hour and capital is rented at $12.00 per hour.
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