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Labor demand is more elastic when: A. the substitution effect resulting from a wage change is larger. B. the scale effect resulting from a wage change is larger. C. Both of the above are correct. D. None of the above is correct.
All economic systems (capitalist, communist, or any other) face similar economic problems. Which of the following questions would NOT be faced by all economies?
Given the demand curve P= 2,000 – 2Q and marginal costs of MC = 1,100 + 2Q, the firm’s profit will maximize at equilibrium price and output of: Based on the demand and cost function in previous question, in a two-part tariff pricing strategy, what is..
Max Corporation has $10,000 in retained earnings that it has not distributed to its stockholders as dividends. It has a choice to invest the funds in a certificate of deposit at a bank at a guaranteed rate of 7 percent, or to plow back the funds in t..
Consider the following hypothetical facts: “One per cent of people in the world are rational. We have a test for rationality. If someone is rational, they have a 60% chance of passing. If someone is irrational, they have a 40% chance of passing. Adam..
Should the Fed be more concerned about keeping inflation low or unemployment low? Please justify your answer. Please explain what the Fed's open-market operations are. Has the Fed changed the discount rate lately? If so, has it had an impact on the e..
Show that the consumers optimal consumption bundle will change despite them being able to afford their original bundle.
Which method is more likely to be technically efficient. Illustrate what is the probability that she wins.
Finally, after graduation you got your 1st job and discovered that now you can start saving (investing). You decided to buy a 1 coupon bond (right after 1st coupon payment), which had already been issued one year ago. If you were to sell this bond on..
What is a basic summary of the Pickens plan (Oilman T. Boone Pickens )? Using the supply-and-demand model explain how Pickens' plan would affect the global price of oil if it were to be successfully implemented.
A local cell phone monopoly faces the following monthly inverse-demand for lines from a typical family: P = 100 – 20Q. The total cost to the monopoly is C(Q) = 20Q. This implies that the marginal monthly cost to the monopoly is $20 per line.
q1. are the normal returns on investment included as part of costs or as part of profits in managerial economics?
A company sells two products, A and B. The demand for product A is given by DA and the demand for product B is given by DB. The price for product A is given by PA and the price for product B is given by PB. The company needs to determine the selling ..
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