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Say that a person has observed the following: family farms in a developing country tend not to consider family labor which is used to work the farm (weeding, harvest, etc) as a cost: that is, family farms in a developing country tend not to value family labor. And say that there are no other costs involved in farming. In addition, assume that every family farm sells all of its output to a local market in which it has a monopoly. Furthermore, assume that the family consumes none of its own farm product. In this case, what is the elasticity of demand at the level of output chosen by this profit maximizing family farm?
During 2003, we began to stop worrying that inflation was a problem. Instead, we began to worry about deflation, a decline in the price level.Assume that the Fed decided to hold the money supply constant.What impact would deflation have on interest r..
In addition to depending on disposable income, suppose household consumption were also a function of the interest rate. In particular, assume that households consume more (i.e., save less) when the interest rate falls. Assume prices are fixed in t..
A firm produces output according to the production function Q=K^(1/2)L^(1/2). If it sells its output in a perfectly competitive market at a price of 10, and if K is fixed at 4 units, what is this firm's short-run demand curve for labor
This is an extremely unusual event because no other country in the world has seen negative interest rates during the last fifty years. How could this happen?
For decr returns to scale, if a firm hires double the amount of managers and also doubles all other input, the managers may not be able to manage their tasks at hand because of how difficult the company has become to handle. Therefore output will ..
The uninitiated might look at trading in futures and forwards contracts as Wall Street's way of just conducting an elaborate gambling operation, with bettors laying money on the direction of commodities, stocks, or other assets.
the world price of zinc has increased to the point where moth balled zinc mines in east tennessee have been reopened
1) Why do German exporters to the US not worry about the appreciation of the Euro 2) What impact does the government adjusting of the CPI core potent dangers 3) How does culture check or enhance welfare and disability abuse
What could a president or other government policymaker do to raise a contry's standard of living.
One current economic issue facing the American government is ensuring people in danger of foreclosing on their homes can keep them. Explain why this issue is important
Suppose that Microsoft is the only producer of operating systems and Netscape is the only producer of Web browsers. Suppose also that nobody wants an operating system without a Web browser and nobody wants a Web browser without an operating system.
I'm trying to discuss whether integration between the following types of firms would constitute a horizontal, vertical, or conglomerate merger.
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