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In the long run the local coffee shop incurs total costs of $625 when output is 1,250 cups of coffee and $750 when output is 1,500 cups of coffee. For this range of output, the coffee shop exhibits.
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
A decrease in the investment rate: Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from s to s'. Draw a graph showing how output evolves over time (put Y_t on t..
Illustrate what is happening to the U.S. real exchange rate in each of the following situations. Explain. The U.S. nominal exchange rate is unchanged, but prices rise faster in the U.S. than abroad.
Which of the following are counted in this year's GDP? Explain your answer in each case. a). Flashy Car Company sold a used car. b). Juanita Jones cooked meals for her family. A retired worker receives a Social Security payment.
Suppose I borrow $200,000 for one year at a fixed nominal interest rate of 7 percent. What is my nominal repayment next year? Inflation increased enexpectedly during the 1970s. Explain why this helped someone who bought a house using a 30-year mortg..
Describe the similarities between the health-care sector and it's problems and the higher education sector and it's problems. Why do these two sectors in our economy have similar problems?
In the 1980s, there were far fewer apple varieties than there are available today. In the early 1990s, researchers at the University of Minnesota patented the seeds for the now-popular Honeycrisp apple variety they bred. As that patent nears expirati..
Jamaica is a small open economy that has a trade surplus. Use savings/investment diagrams to answer the following: Suppose the Government of Jamaica decides to raise taxes. How will the equilibrium amount of savings, investment, and trade balance be ..
The firm output sells competitively explain how many tons of output will be produced.
What are some real-life examples of monopolistically competitive, oligopoly, and monopoly markets?
What are the different kinds of office productivity software in the cloud?
Suppose that bank had a desired reserve ratio of 4 percent, $ 12 billion in currency, no excess reserves, and deposits at the central bank of $ 4 billion. What is the amount of deposits in banks? The amount of deposits in banks is $__ billion.
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