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Q1. Assume which perfectly competitive firms producing cashews discover which P exceeds MC. Will their combined output of cashews be too little, too much, or just right to achieve allocate efficiency? In the long run, Illustrate will happen to the supply of cashews and the cost of cashews? Use a supply and demand diagram to explain how explain how which response will change the total surplus (i.e., combined amount of consumer surplus and producer surplus) in the market for cashews.
Q2. Illustrate what are the relationships between strong monotone and non-satiation? Also illustrate what are the relationships between strong monotone and local satiation?
By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP
In a current newspaper article you also read that The Camera Shop has exhausted its undertaking capital and that no new investors
Illustrate would be the effect on D' of decreasing the variable cost per unit by 25% if the fixed costs thereby increased by 10%.
Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.
A recording company obtains the following information about the demand and production costs of its new.
Some economists argue that only unanticipated increases in the money supply can affect real GDP.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
Suppose that the market for wheat is characterized by the following demand and supply relationships.
Wal-Mart is often criticized for importing many of the goods they sell. Why do they buy goods from foreign markets.
Why all the balance of payments accounts be in surplus. What factors determine the demand for British pounds in foreign exchange markets.
Compute new supply of $ at each exchange rate and graph the new supply curve.
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