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Suppose that the representative firm needs to use its net worth as collateral to finance its investment projects. When net worth is high, the firm has more collateral and can invest more. When net worth is low, the firm has less collateral and must decrease investment. Using the AS and AD curves, explain why GDP will fall.
The positively-sloped part of the long-run average total cost curve is due to which of the following?
Suppose that market demand for answering machines is given by the expression QD = 1,000 – 150P+ 25I. Assume that per capita disposable income I = $200 and the price of answering machines is P = $10. Calculate the price elasticity of demand for answer..
After 25 years explain how much larger is Country B's economy the Country A's economy. Why is the answer not 25 percent.
If a monopolist produces clear spring water at zero total cost, its total revenue will be maximized where, The price elasticity of the firm's demand curve is equal to one
Demand in a market is found to be inelastic. Is the market necessarily an antitrust market? Is this necessarily true? If p A + t > pB , is A an antitrust market?
Whether the U.S. Congress press a tariff raising the cost of Japanese compute. Illustrate what are four mutually exclusive states of the world that you should be concerned about
A monopolist faces a market demand curve given by: Q = 70 – P. This monopolist charges a single price for its output. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, the monopolist’s profits are equal to what numb..
Consider following couples of variables and discuss whether you expect to find positive, negative, or no correlation between them. In each of the positive and negative examples, indicate whether or not you expect the correlation to be strong or weak.
Gasoline is typically less expensive in the United States than across the border in Canada but now suppose that U. S. gasoline price rises above that in Canada due to a change in taxes. How would the gasoline-purchasing behavior of a person who lives..
Give an example of an organization or business in your area that performs the "place" function, and explain why you picked this organization/business.
The terms of trade if the united states trades 1 can of soda for 5 units of clothing.
Determine the effect of expansionary monetary policy in the AS/AD model when the economy.
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