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Distinguish between the short run and long run costs of production.
Two firms have identical cost curves, but firm A is a price taker while firm B is a price searcher. Is it possible that the two firms could find themselves at the same wealth maximizing output? (Assume that firm B is NOT able to engage in any form of..
Suppose an economy is in long-run equilibrium. The central bank raises the money supply by 5 percent. Use your diagram to show what happens to output and the price level as the economy moves from the initial to the new short-run equilibrium. What cau..
Organize the above data into the appropriate categories for the current as well as capital accounts determine the current account balance, the capital account balance, as well as the official settlements account balance.
After having determined the different criteria, discuss the importance of these factors and rank them accordingly. Have a report explaining the criteria
Using the Federal Reserve's open market operations tool, show the effect of expansionary monetary policy on GDP
Sally deposited $100 a month in her savings account for 24 months. For the next five years she made no deposits. What is the future worth in Sally's account at the end of seven years if the account earned 6% interest annually, compounded monthly?
A small tie shop finds that at a sales level of x ties per day its marginal profit is MP(x) dollars per tie, where MP(x) = 1.35+0.04x-0.0021x2. Also, the shop will lose $65 per day at a sales level of x- 0. Find the profit from operation the shop at ..
Discuss possible hold-up problems, importance of long term contracts, and possibility of underinvestment in labor that might occur under such compensation schemes.
Explain the terms 'compensating variation' and 'equivalent variation' of a price change with diagrams. Under what circumstances would the two measures coincide?
Using the fundamental equations from the simple monetary approach, describe how each of the following will affect the home and foreign price level, real money balances, and the exchange rate, EH/F . Also, state whether the home currency appreciates o..
The penetration pricing strategy is where a new entrant charges a price that is initially higher than the price normal charged in attempt to cover their startup costs.
Outline the three forms of the efficient market hypothesis.
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