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Q1. Sprint, prior to spinning the businesses off to concentrate on cellular phone service, provided both local and long distance landline service. A study noted that they charged a price for local telephone services that was roughly one-half of its cost of providing the services. In contrast, it charged almost two times its costs for long distance services. What was the managerial economic rationale for this pricing?
Q2. Assume that the currency-deposit ratio is 32%, the required reserve ratio is 7%, the excess reserve ratio is 1%, and total money supply is $1,320 billion. What is the amount of high powered money?
The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy.
If the market price of the product is 270, how much output should the firm produce in order to maximize profit. How much profit will this firm make.
The percentage effect which increase in output will have on the profit made from producing and selling commodity Alpha will be.
Prepare a recommendation for each company. Should your recommendations be the same for both companies
Illustrate why did official money lose its meaning in Germany during the 1920s. What did the German government do or not do.
If planned aggregate expenditure (PAE) in an economy equals 2,000 + 0.48Y and potential output (Y*) equals 4,000, then this economy.
Using short-run cost theory, explain the impact of this additional patient on the SAVC and SATC. Do they increase or decrease.
Assume the price falls to $ 7.50. What think would be a short-run impact on the production of the company. What would be the long term.
Illustrate the solution graphically using Labor Supply / Labor Demand and Production Function diagrams.
Suppose you work in a financial institution, how you would advise your clients.
Explain how many units of pork will the government be forced to buy to keep the price at $2.25. How much will the government spend in total.
Explain how can multiplier have a -ve effect. What is the relationship among the multiplier as well as the marginal propensities.
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