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Question: Use the following diagrams to answer a and b.
a. Show the effect of an increase in demand on the perfectly competitive firm's price, marginal revenue, output, and profits in the short run.
b. Show the long-run effects of an increase in demand for the industry, and the effects on a perfectly competitive firm's price, marginal revenue, output, and profits for a constant-cost industry.
Suppose that unusually hot weather in summe causes the demand curve for ice cream to shift to the right. Why will the price of ice cream rise to new market-clearing level?
Many Indian mothers weren't willing to make an investment in the company's educational toys because research showed they didn't perceive the play things as potential learning tools. But a shift in attitude began about two years ago.
Prepare a Presentation on Monetary Policy Independence under Flexible Exchange Rates
Write a study blog on local economic development. You may identify such a case as reported in newspapers, such as The Washington Post, Los Angeles Times.
A decision to postpone commercial development of an undisturbed parcel shows an example of what type of economic benefits?
A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95.
How does the liquidity premium theory of the term structure of interest rates differ from the unbiased expectations theory? In a normal economic environment
Think about the trade off in work and leisure during a given day, and from day to day. During a given day, does opportunity cost of work rise, decline, or remain constant with each additional hour of work?
NJ taxes wine sales. While the retailers pay the taxes on wine sales, they may passon some or all of these taxes to consumers by raising prices. Identify the specific tax (tax per bottle sold) for which NJ's equilibirum market price and quantity e..
A welfare system in which benefits take the form of cash payments to recipients is preferable to one based on the use of price subsidies on merit goods. Discuss this statement using consumer theory to illustrate your arguments.
Explain what happens to consumption, investment, and the interest rate when the government increases taxes.
Every college student had the problem of selecting the college or university to attend. Was this a simple, intermediate, or complex problem for you? Explain.
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