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Woodard Inc. is a firm operating in a market with another larger firm. The market is a mining industry for a rare metal. Woodard Inc. has the following short-run cost curve:
TC = 500,000 -1,000Q + 100Q2 and faces the following TOTAL market demand curve:
P = 40,000 - $20.50Q
Please compute Woodard Inc.'s marginal cost curve.
Use the market-clearing Real Business Cycle model developed in chapters 9-11, to analyze the effects of expectations of higher future government spending and (lump-sum) taxes. Under what conditions can this explain a slow recovery?
State an economic product for which the demand rises faster than income when income grows.
Given the above information write an equation for the market supply curve. Explain how you found this equation.
If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you expect these policy changes to impact the economy?
If unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors, by themselves, have on export trade, and why
Why does the aggregate demand curve slope downward?Give at least three reasons and examples when addressing thisquestion. Identify an event that would shift the AD curve and whichdirection the AD curve will shift.
Black Diamond Tennis & Golf Club offers golf and tennis memberships to residents of Black Diamond, Ohio, in which there are 2-types of families:
Determine the rate at which Mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output. To minimize costs Mitsubishi should hire capital and labor until the marginal rate of technical substitution reache..
How does the money multiplier change when the nonbank public decides to hold more currency relative to deposits?
Economics 312/702 -Macroeconomics: Problem Set 5. Suppose that r∗ increases but r is unchanged. Determine the effects of this change on consumption in the current and future periods and the current account balance
Women have increased the amount of education they have achieved relative to men, and average years of schooling completed are now approximately the same for males and females. Human capital theory predicts that this would close the male-female.
Draw a diagram in i-Y space showing equilibrium. Write clearly what the position of the IS, LM and BP=0 curves depend upon. Assume m/κ
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