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Suppose you run a firm in a perfectly competitive industry and would like to learn about what your competition is doing. You know that one of your competitors produces a single output using several inputs. The price of output rises by $4 per unit. The price of one of the inputs increases by $2 and the quantity of this input that the competitor uses increases by 8 units. The prices of all other inputs stay unchanged. What can you deduce about the output of your competitor? Will it stay the same/increase/decrease/by how much?
Use the Baumol-Tobin model to find money demand under the following assumptions. Income is $5000 per month (which can be broken down into 2500 in real income and a price level of 2) paid at the beginning of each month in the form of interest-earning ..
Recall a time when you received poor service at a restaurant. How did it impact your overall experience?
XSU is located in the middle of a residential neighborhood. The residents of the surrounding 4 blocks notice that street parking is a problem while classes are in session. Explain under what conditions (if any) the building of additional parking lots..
A personal experience to explain the relationship between virtue, values, and moral concepts as they relate to one of the three theories.
Your papers must demonstrate a comprehension of the issue based on facts, not opinion. Facts may be from the course or other stated references.
Since 2005, the production of oil in the USA has increased dramatically The price of oil has fallen from $70 per barrel to $45 per barrel. This additional production has been very expensive, with operating cost around $55 per barrel to produce. From ..
q1. in reading the national business news that mortgage rates improved by 50 basis points. if mortgage rates were
Suppose Danielle consumes pancakes and waffles. Her utility function can be expressed as U(P,W)=10P^.75 W^.5. Furthermore, suppose the price of pancakes is $4.00 and the price of waffles is $2.50. Define Danielle’s marginal rate of substitution for P..
Uwe Reinhardt, an economist at Princeton University, wrote the following in a column in the New York Times: [Cost-effectiveness analysis]
When a leading developing country defaults on its loan to foreigners, discuss (with the aid of loanable funds market diagram) why interest rates will rise on bonds issued by many other developing countries.
What is the highest possible total revenue that the team can hope to collect
Price higher in monopoly market. Bigger quantity in perfect competition. How can a firm gain by reducing competition.
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