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Suppose Mayor Strange comes to you and asks you whether or not Montgomery should bid for 2024 Olympics. He says that a group of economic consultants has said it will be a major boon for Montgomery’s economy. What kind of things did they likely claim in their report to the Mayor? What factors did they likely neglect to mention? Is it likely or unlikely that Montgomery would see a major impact? Why or why not?
Using an aggregate demand and supply diagram, explain how each of the following scenarios affects the equilibrium price level and aggregate output. Consider first the short-run, then the long-run equilibrium for each scenario.
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q = F(L,K) = 10L0.5k0.5, where L is their number of workers and K is units of..
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Create a graph that shows how the payments are divided between interest and princip..
Which of the following statements about setting optimal two-part tariffs for many consumers is NOT true? The number of buyers (entrants) declines as the entrance fee (tariff) increases. The profit from the entrance fee (tariff) is a concave function ..
Consider the following cash flow. Determine the annual worth if the minimum attractive rate of return is 9% per year.
What are the political and legal issues of South Africa. For instance the stability of the government, legal issues of concern to four business, etc.
In your own words, explain the farmer’s optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society’s perspective? Explain who benefits and is harmed under the free market solution.
Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is indentical, with Total Cost TC= 1+0.5Q+2Q? Identify the consumer and producer surplus on the..
q1. elucidate how a person who refuses an offer of employment in order to keep looking for a better job is counted by
Illustrate what would be total incremental investment in accounts receivable and invent theory to support expected increase in sales.
Describe the behavior of oligopolistic firm. how does the firm use Game Theory? define and explain the two types of game theory associated with competition? how do decisions change from short run to long run?
There are 2 firms to consider here from 2 different industries. Determine the optimal price that both firms should be charging. Articulate which firm is more likely to earn ‘excess profits’ in the long run…and explain why this is your answer using yo..
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