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1. Explain why the following statement is true: It is possible for average variable cost (AVC) to rise while average total cost (ATC) declines.
2. Why do business firms tend to be inefficient at very low and very high levels of production? Address both fixed and variable costs.
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure
Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected.
Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.
Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment
Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
What is national saving? What is private saving? What is public saving? How are these three variables related?
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
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