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1. Using your knowledge of marginal revenue product, explain the following:
a. A star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500.
b. A president of a company is paid not to stay in his job for the last two years of his contract.
c. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger model, even though both aircrafts cost the same to manufacture.
2. The only legal employer of military soldiers in United States is the federal government. If the government uses its knowledge of its monopolistic position, what criteria will it employ when estimating how many soldiers to recruit? What happens if a mandatory draft is implemented?
Suppose following estimates from the 1990s of shares of income of each group. Draw a rough Lorenz curve for each country. Which has most nearly equal distribution,
Compute the expected stock price for each firm using the constant growth dividend discount model.
If the price changes above occurred for all goods across the economy during the four year period, elucidate how nominal GDP and real GDP would differ.
Suppose Japan agreed to a voluntary export restriction which reduced US imports of Japanese steel by 10 percent. What would be the likely short-run effects of that VER on the U.S..
Discuss and explain why hyperinflation has such a devastating impact on economies. Describe what it takes to stop hyperinflation.
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
The rules of the federal government influence outcomes of many activities in that economy. When government rules change or unplanned events occur, the resulting economic activity will usually change.
Illustrate what is the relationship between the trade situation, the value of the dollar, the national debt and the budget deficit/surplus.
Syracuse Paper supplies printer paper in upstate New York. Like output of other wholesale distributors, Syracuse Paper must meet strict guidelines and printer paper supply industry can be regarded as perfectly competitive.
Elucidate three general economic principles along with being able to identify three to five macroeconomic indices e.g.GDP,CPI. I must also be able to make an evaluation and develop a forecast from the article.
Determine the four supply factors of economic growth and also find the demand factor?
If it will cost us approximately $0.75/bottle to supply more Coke to our consumer what should we do if our goal is to maximize profit.
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