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The government is currently considering setting a maximum price (price ceiling) for basic goods to ensure that people can get access to these goods at this current time. Fully explain your answer and also use a single diagram to demonstrate the likely outcomes of this policy if the maximum price is set:
-Below the current free market price
-Above the current free market price
-At the current free market price
-The Australian government has implemented a number of microeconomic reforms over the past 40 years including deregulation of banking. Do you think banking deregulation has been beneficial or not? Explain your answer. Describe what you think may be the difficulties with microeconomic reform in Australia and highlight an area that you think currently requires microeconomic reform. Justify your answer.
Computer time saved is worth $325 per hour and the interest rate is 12% compounded monthly. Should the old unit be replaced now? If the system is used 16 hours per day, calculate the IRR represented by using the improved storage system.
Hedging is an effective tool for mitigating exposure to a variety of risks. Generally speaking, corporations like to keep risk to a minimum, so I would assume that any corporation with exposure to foreign exchange risk would be utilizing hedges to re..
Based upon Smith's quote above, what motivates a business to help people? Underline a specific phrase of sentences in the passage that supports your conclusion.
Explain the concepts of explicit costs and implicit costs. Why do economists include implicit costs in their calculation of profits? If monopolistically competitive firms have some control over the prices they charge, why do they experience zero econ..
The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2. Suppose that a new tax of $3 per sack of rutabagas is introduced.
Who are the stakeholders in this case, and what are their stakes? The ban received approval from the New York City Board of Health, but a state Supreme Court judge subsequently halted it. Mayor Bloomberg vowed to appeal. Irrespective of the legal wra..
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must be _____ and _____ must be _____.
What are the key similarities and differences between Russia and China?
Please explain and provide examples of companies in your explanation.
Instead of a merger, now consider a monopolisation case with a dominantfirm located in town A. All other assumptions are as before.
Illustrate what will be the new equilibrium price, if the government puts a 15 cent per tax on the candy.
The inflation rate of Price land is at 3%. It is predicted to stay at 3% for the next 5 years, and drop to (and stay at) 2% after 5 years. What is the PW of a cash flow that pays $1000 per year forever if the real rate of return is 5%?
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