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Suppose there are two identical firms producing Kale Pops, Anvil and Bale. They both have the same constant marginal cost of production of $2 and face the market demand curve Qd= 100-P. Each firm knows everything about each other. The only difference is that Anvil chooses how much it will make first, and once Anvil chooses, Anvil can not change that decision.
-What will Anvil choose?
-What will the other firm, Bale, chose to produce? (Hint: How should Anvil think about how much Bale will produce when Anvil decides how much to produce?)
Illustrate what are the levels of income per worker also consumption per worker. Show how capital stock per worker will evolve over time in both countries.
Suppose Alan’s preferences are described by the utility function: Find Alan’s MRS. Find the equation for Alan’s indifference curve through the bundle (3, 6).
A manufacturing company produces steel housings for electrical equipment. The main component part of the housing is a steel trough that is made out of a 14-gauge steel coil. Construct a frequency distribution and a percentage distribution. Construct ..
The higher the marginal propensity to consume the more powerful tax policy is to influencing consumption. Negative real interests rates imply that if you save today, you can purchase a smaller basket of goods and services in the future, relative to t..
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
An example of a leakage in the circular flow model is. An example of an injection in the circular flow model is. Unemployment that is a result of a wage above the equilibrium wage rate is
it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.
Purpose of the business in terms of the product or service you intend to provide through your business
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be wi..
A machine that produces a certain piece must be turned off by the operator after each piece is completed. The machine "coasts" for 15 seconds after it is turned off, thus preventing the operator from removing the piece quickly before producing the ne..
Suppose Charlie Brown opens A lemonade stand. He hires Linus and Lucy for $12 a week ($6 each).He "renls" pitchers and spoons from his mother for $5 a week and spends $20 a week on paper cups, lemons, sugar, and other materials. Before he opened the ..
Mortgage-backed securities are: If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:
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