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Microeconomics is the study of economics at the individual or micro level. One of the most well known microeconomic models is the production possibilities frontier, which is the maximum combination of output that an economy can produce given resources and technology. For this SLP, we will focus on the production of a country other than the United States. Think of a country that interests you. You can choose a country that you have lived in, visited, or even thought of visiting. Remember it can't be the US. You can use the list of popular new sources in module 2 and find a current article about this country and answer the following questions:
[A] What country did you choose? Why does this county interest you? What are some facts about this country (population, GDP, etc.)? (try to use other sources to find additional facts about this country.
[B] What does the article discuss? Why is this issue important?
[C] How do you think the current event will affect the global economy?
Examine the basis for the trends in consumption patterns, as discussed in any article and explain what has occurred to change the demand for, or the supply of, the products, and market prices of those products.
Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.
Consider the price-taking firm in competitive industry for raw chocolate. The market demand and supply functions for raw chocolate are estimated to be
Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as ..
I have recently been employed by a new company selling electronic dog feeders. My customer has asked me to gather some information on the supply and demand for feeder,
What price would Soft Rock have to charge to sell 2,000 T shirts? Compute the own price elasticity of demand when the price goes from $5 to $4.
Determine price and the level of service if competitive bidding results in a perfectly competitive price/output combination. Determine price and the level of service if the car lot grants a monopoly franchise.
Describe why the following is an example of monopolistic competition: There are a number of fast-food restaurants in town, and they compete fiercely.
Gentleman Gym just paid its annual dividend of $3 per share, and it is hugely expected that the dividend will raise by five percent per year indefinitely.
What are some of the ethical dilemmas encountered by traders in their pursuit of profits for both their company and themselves?
Find out the Marginal Revenue and Marginal Cost
Compute the profit maximization level of activity. Compute total revenue, total cot and profit or loss at profit maximization level of activity. Compute elasticity of demand at profit maximization. Compute the breakeven level of activity.
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