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You live in a small town with only one grocery store. The demand curve for food in your town is given by -1/5Q. the grocery store has a total curve given by TC = 50 + 1.25Q
A) What is the profit maximizing price and quantity of food if the firm charges the same price to everyone? How much profit will they earn?
B) Graph this situation including profits
C) How much dead weight loss is there?
D) How much consumer surplus is there?
E) How much producer surplus is there?
Nick has a goal to pay his credit card balance in full by June 30. When he first wrote the goal in December, his balance was $2,500. It is now April, and he can pay all except $200. Evaluate his progress and describe the results in one to two sent..
During a coffee-room debate among several young MBAs who had recently graduated, one of the young executives flatly stated, "The most this company can lose on its Brazilian division is the amount it has invested (its fixed costs)."
The question asked that assume that the aggregate demand curve.
Total spending in the economy is equal to consumption plus investment plus government spending plus net exports. If household want to save and thus do not use all their income for consumption, what will happen to total spending
Springsten Music Corporation earned $820 million last year and paid out 20% of earnings in dividends. By how much did the company's retained earnings increase?
Determine the price elasticity of demand for a resource. Why is it important and what is it used for.
Thomas Edison once complained that he was not making a profit selling light bulbs because his factories were operating 25 percent below capacity.
1. Using IS/LM, aggregate demand and aggregate supply model of the economy, show that monetary policy is effective in the short run but it is neutral ( ineffective) in the long run. In the same context, identity conditions which you would recommen..
Illustrate what other economic factors are affected when taxes are raised or lowered, and how are they affected.
Define transfer payments and give an example. Describe why transfer payments are not included in GDP. Determine which components of GDP would be affected through following,
What are the major factors that determine investment, and what impact does each have on aggregate demand? Describe the difference between a microeconomics demand curve and an aggregate demand curve.
Assume the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this change any policy changes you discussed in Part 1?
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