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Q1. Suppose we have two economies- let's call them earth and mars- that are identical, except that one begins with a stock of ideas that is twice as large as the other. A/Earth0=2* A/Mars0. The two economies are so far apart that they don't share ideas and each evolves as a separate roomer economy. On a single graph (with a ratio scale), plot the behavior of per capita GDP on earth and mars over time. What is the effect of starting out with more knowledge?
Q2. Calvin Coolidge once said that "inflation is repudiation". What might he have meant by this? Do you agree? Why or why not? Does it matter whether the inflation is expected or unexpected?
Assume the current market price of candles is such that there is a surplus.
There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.
If a firm is losses money, it might be enhanced to stay in business in the short run. Is this statement ever true.
Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility.
Suppose that the market for wheat is characterized by the following demand and supply relationships.
To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.
Solve for the equilibrium interest rate. Solve for equilibrium value of consumption and investment.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
What reliance performance would be measured efficient. Elucidate reliance behavior which would be considered excessive.
If each test provides$6 net marginal revenue before labor and capital costs, is expansion advisable? Show all your work and explain your answer well.
Calculate the point elasticity of the firm's total sales revenue with respect to the amount of labor used when q = 2.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
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