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There are many economists who have been analyzing different industries move from a monopolistic competitive to more of an oligopolistic one. Their justification is that government and new policies are making 'competition' more and more difficult. Do you agree? Disagree?
Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two goods, X and Y. The consumer has I=$60 to spend on the two goods, and good Y costs py=$2 per unit. The price of good x, px, is also exogenous..
Beth has plans to go to a play and already has a $50 non refundable, non exchange able, and non transfer able ticket. Now Carl, whom Beth has wanted to date for a long time, asks her to a party.
Consider the following firm with the production function Q=F(L)=2L^1/2. L=labor. Wage w=12. Fixed costs are FC=500(sunk cost). Derive the short run cost function. Graph this function using excel.
For several months before your vacation trip to germany,you fiind out that the exchange rate for the peso has increased relative to the euro. are you pleased or saddened explain.
Other things the same, a decrease in the U.S. interest rate a. shifts money demand to the left. Which of the following shifts aggregate demand to the left?
(a) What is your profit maximizing use of labor and capital? Clearly show your steps and calculations. (b) What is your economic profit or loss?
In fact, nominal interest rates do not change significantly in the fourth quarter of the year, due to deliberate Fed policy. Explain and show graphically how the Fed can ensure that nominal interest rates remain stable around Christmas.
The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that
Why are stocks considered riskier than bonds? Be sure to discuss differences in cash flow.
Describe the effects of each of the following managerial decisions or economic influences on the value of the firm:
Discuss Absolute Advantage and Comparative Advantage, and provide at least two examples of each.
1. If GDP is growing at a rate of 5% per year, in how many years will GDP double? 2. What is the rate of inflation from year 1 to year 2?
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