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The Smythe chicken farm outside Little Rock, Arkansas, produces 25,000 chickens per month. Total cost of production at Smythe Farm is $28,000. Down the road are two other farms. Faubus Farm produces 55,000 chickens a month, and total cost is $50,050. Mega Farm produces 100,000 chickens per month, at a total cost of $91,000. These data suggest that there are significant economies of scale in chicken production. Do you agree or disagree with this statement? Explain your answer.
If the government increases the money supply by 50 percent, and velocity of money and real GDP remain constant
1. assume c 20 .75ydnow assume that government spending is increased by 12 billion. that would increasedecrease
Assume that the Fed perceives inflation on horizon and decides to follow a contractionary monetary rule. Describe the effects of this rule on the exchange rate of dollar.
Determine the difference among National Income, Gross National Product, and Gross Domestic Product? Why do most countries now use GDP as a measure of national output?
Describe the relationship between unemployment and real and nominal wages. Which is more important and why? What effects would either an increase or decrease in unemployment have on wages?
Utilizing free markets and the price system always results in a more efficient resource allocation than central planning. Just look at what happened in Eastern Europe.
Explain how does the Central Bank measure the money supply in the contary. Does the Central Bank have an interest rate policy.
In each of the following cases, either a recessionary orinflationary gap exists. Assume that the aggregate supply curveis horizontal so that the change in real GDP arising from a shiftof the aggregate demand curve equals the size of the shift of th..
What is the level of price, output, and amount of profit for an unregulated monopolist? Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? ..
A representative company with long-run total cost given by TC = 2,000 + 20q + 5q2 operates in a competitive industry where market demand is given by QD = 10,000 - 40P.
Does Consumer Bank face interest rate risk? That is, if market interest rates increase or decrease 1 percent, what happens to the value of the equity? How can a decrease in interest rates create interest rate risk?
Briefly elucidate how knowledge of price elasticity between different groups of customers
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