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Peggy-Sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work at $120,000 per year. Currently, she is producing her own cookies, and she has revenues of $280,000 per year. Her costs are $41,000 for labor, $20,000 for rent, $40,000 for ingredients, and $6,000 for utilities. She has $200,000 of her own money invested in the operation, which, if she leaves, can be sold for $30,000 that she can invest at 20 percent per year.
What is the Elasticity of Demand? Is it elastic or inelastic?
Calculate the average and marginal welfare costs of 10% and 20% rationing under the assumption that demand is linear
Assume if the inflation rate is 5percent is this still acceptable. Provide quantitative justification for your answer.
When the price level is equal to the expected price level, we know from our theory that
Compute the output gap for each year - What is the unemployment rate when this economy is at "full employment"? What kind of unemployment exists at this time
Make sure you indicate the horizontal and vertical intercepts. Now, suppose the local government is considering two health plans. Under plan A, the government will give out vouchers worth 2 free visits to the doctor.
In your XXAssign3 folder created in Assignment1, use a word processing program like Word or Writer to create a file called security.
How to analyze that the capital inflows increase the pool of savings available for investment, and it leads to the appearance of calls for capital account
This solution will focus on the negative impacts of NAFTA from two main fronts: the negative impact on trade and negative impact on employment.
A consumer, D Carroll, spends all of his income on 2 goods X and Y. The 2 goods are both normal but are not complementary. The price of good X is reduced but the price of good Y is unchanged. The consumer continues to spend all of his income on th..
At the same time, a number of less capable fringe firms are emerging. How do these features fit into an industrial organization (IO) view of the market versus a resource-based view (RBV)?
What is the composition of GDP by percentage, what is the GDP per capita and If government purchases go up in the short run, what happens to GDP?
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