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Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output. How is this possible?
The higher the percentage of debentures, the greater the risk borne by each debenture, and thus the higher the required rate of return on the debentures.
?Discuss the causes of the Great Depresion in terms of what you know about the economy today. Do you think another Great Depression is possible? Why or why not?
How has the educational system affected the quality of our labor force? Explain the Malthusian theory of population. Is it relevant today anywhere in the world? Explain where and why. How does the American savings rate compare to that of other leadin..
Should Banks Make Money on Money? Can the banks make easy profits because the money multiplies? How? Is it fair and efficient? Is the basic structure of banking stable and fair? Could it be different?
Elucidate how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
q1. in the case of the diamond duplicative mineshafts were a waste if economic resources and the law makes them
There are always risks associated with the experimentation of a new manufacturing process or with the entry into a new global market, the risks of failure. How should one decide to proceed or not to proceed with a risky venture? What is the proper le..
Prepare a report on the current state of the Australian economy and its management by the Federal government. You need to do this by examining the four economic indicators of economic growth (GDP), unemployment, inflation and trade (including the ter..
20 years ago John invested $10,000 in a mutual fund. The value of his investment declined by 19% during the first year and then declined another 30% during the second year. 18 more years have passed, and john's cumulative return on the 20 year period..
Suppose that a certain country has an MPC of 0.9 and a real GDP of $500 billion. If its investment spending decreases by $12 billion, what will be its new level of real GDP?
Elucidate any of the assumptions required for the Coase Theorem likely to be violated in an important way.
A consumer’s preferences are summarized by the utility function U = X2Y (then MUX = 2XY and MUY = X2 ). Assume that M = 120, PX = 4, PY = 2. a. What is this consumer optimal choice?
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