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Suppose that supply is upward sloping and demand is downward sloping. If there is a decrease in demand, total surplus:
a) will increase.
b) will decrease.
c) will remain the same.
d) will increase and then decrease.
A industry is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70. What would you advise this firm to do.
Gorton argues that regulating capital ratios cannot prevent a systemic run on banks. The FDIC has never extended protection to uninsured general creditors because this would create increased moral hazard in the banking system.
Oligopoly is the predominant market structure in the airline industry. In the express package business, FedEx, UPS, and DHL compete in the global air express industry. In the US, FedEx and UPS are a duopoly.
To what extent can Rolls-Royce's strategic approach can be best categorized as "Deliberate" or as "Emergent"? Explain your answer and explain Porter's five forces framework and suggest to what extent it has helped Rolls-Royce to better analyze its ..
John intends to invest a certain sum of money today in order to earn a return of $6 000 in five years time. how much should john invest today at the interest rate of 7%, compounded annually?
No suppose that the soy industry produces differentiated products and is characterized by EOS and monopolistic competition. Auto industry is still perfectly competitive. what do you mean by the pattern of trade.
An interest rate of 10% compounded continuously is desired on an investment of $15,000. How many years will be required to recover the capital with the desired interest if $2,030 is received each year? (Please show formula used and work)
Suppose that one canister of Pringles costs £25, that of Macadamia Nuts costs $5 per can, and that the relative price of Macadamia Nuts in terms of Pringles is 3 cans per canister. Figure out the following: The dollar-pound exchange rate, i.e. the pr..
Assume the demand for balloons is P=40-2Q. The supply is P=3Q. What is the equilibrium price and quantity? What is producer surplus? What is the consumer surplus?
Some personal computer software is sold at special discounts to students. Other software is provided in a less powerful version for students. Why do publishers offer discounts to students? What is the purpose of developing less powerful editions?
If the price increases by 10 percent, by how much does the quantity of household (a) natural gas and (b) electricity change in the short run and in the long run?
Impact of Monetary Policy How does the Fed’s monetary policy affect economic conditions? Trade-offs of Monetary Policy Describe the economic trade-off faced by the Fed in achieving its economic goals.
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