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Take the partial derivative of y with respect to x, where y has no relationship to x. (Hint: think of as a constant
You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasticity of demand of Texans for a car wash is -2, while that of non-Texans is-1.5. Your marginal cost is $6. Are the conditio..
A policy that results in a Pareto improvement will always satisfy the Kaldor-Hicks Criterion; however, it may decrease social welfare.
Illustrate what is the relationship between marginal revenue also marginal cost as the firm increases output?
k=5 what is the probability that fewer than 9 individuals have not had adverse reactions when the experiment terminates?
If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe:
The Equation of Exchange is given as MV = PY , where M= the nominal money supply, V= the velocity of money, P= the price level and Y=real GDP. What is the Monetarists’ argument (based on the quantity theory of money) about an increase in M? Explain a..
If firm A expects firm B to set its price at $20, what is firm A's best response? If firm B predicts that firm A will price good A at $36, what is firm B's best response? What is the NASH EQUILIBRIUM price and quantity for each firm?
Countries often resort to imposing barriers to trade during difficult economic times. Recall the Great Depression, which began in 1929, where unemployment.
Suppose no firm can distinguish superior from inferior workers. Write down the expression determining the common wage, and explain it.
Hart's Floral Shop sells bouquets for special occasions. Annual demand is 500? bouquets, the? company's cost to place an order with its vendor is? $25, and the cost to hold a bouquet in inventory for a year is? $15. If Hart orders from its vendor in ..
A lottery game has balls numbered 1 through 19. What is the probability of selecting an even numbered ball or a 9
A firm production function is given by q = f(k,l) = k.l^1/2. Consider a short-run situation where the level of capital is fixed at k1. This firm’s profit function is of the form Π(p,v,w,k1) = a(w^b)(p^c)(k1^d) – vk1, where factor a is equal to [a]. U..
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