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In the microeconomics in context model, the sectors of economic activity include:
a. households, families and communities
b. the public purpose sector
c. the business sector
d. all of the above
Elucidate what is the firm's cost function. What are its AC, AVC, and MC functions? Draw the AC, AVC, and MC curves.
An economy has the following Money demand function: (M/P)d= .4Y/i^.5 . Where i is the nominal interest rate. Calculate velocity if the nominal interest rate is 4 percent. Calculate the new velocity of money.
Let the total welfare gain from the innovation be given by W = V + S. Compute expressions for W for both competition and monopoly.
Which statement is true? The marginal cost curve is used to determine if a firm is operating at peak efficiency. A firm will always try to maximize its total revenue.
What are the determinants of demand? What happens to the demand curve when any of these determinants change? Distinguish between a change in demand and a movement along a fixed demand curve, noting the cause(s) of each.
The current government deficit: include how current fiscal policy has affected the deficit, and how the country should deal with any problems you identified?
Suppose two firms (Firm 1 and Firm 2) are competing against each other in a (duopoly) market. Suppose further that the demand is given by the equation P= 700-30(q1+q2), where P is the price of the good, q1 is the quantity sold by firm 1, and q2 is th..
If sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the AFC per paper, the MC per paper, and the minimum amount that you must charge to break even on these cost.
In the world of electronics overtime people realized the immense use of having a personal laptop. And at the same time the technology has improved significantly in last decade. In fact the technological improvement has surpassed the increase in willi..
Why is a vending machine, which requires payment for each snack purchased, used to sell snacks, while a newspaper can be sold out of a box that allows anyone to take more than one paper?
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. Assume that the country is in a budget deficit and carrying a..
The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB). What were those actions? Why did the ECB take those actions?
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