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Q. 1. What factors are important in determining the length of the imitation lag and the length of the demand lag? Explain.
2. Ignoring the mathematics, explain the operation of the Krugman model in economic terms, and indicate the principal lessons of it.
3. Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain.
4. Is the distinction between "intra-industry trade" and "inter industry trade" a useful distinction? Why or why not?
Government encourage a decision to expand? How would it affect the reputation of the business?
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
What is output that should be produced to achieve economic efficiency and the value to society for correcting the externality.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
Make sure to make available examples of real world to strengthen your position of wherever this might be case
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
Distinguish between the resources market and the product market in the circular flow model.
Board of directors has directed you to choose an output level that maximizes the firm's profit. You have an incentive to maximize profits because your job and salary depend on the profit performance of this company.
The equilibrium quantity increase or decrease depends on Demand
Changes in disposable income affect government purchases and the government purchase function. How do changes in net taxes affect the consumption function.
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