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What is Ronald Coase' "Theory of Social Cost" and how does it pertain to development?
What rate of output maximizes profits? What is MR at the rate of output? What is price? If output is increased beyond that point, what is the relationship of MC to MR? How will this affect total profits?
A friend of yours just bought a new sports car with a $5500 down payment, and her $32,000 car loan is financed at an interest rate of 0.75% per month for 36 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $1..
Diseconomies of scale exist whenever long-run average costs:
Assume the economy is initially in equilibrium, and then firms expect future total factor productivity to decrease. Using the New Keynesian Model framework: Explain and show graphically the impacts of this event on the goods and money markets.
1. What is true of the poor's borrowing and lending activity?
Do you agree with Roosevelt Thomas' position that our focus should be on managing diversity? Explain
As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: a tax that would effectively increase the price..
Aggregate demand can be defined as:
Think of an example of the principal-agent that you experienced first-hand or read or heard about. What factors led to the problem? Were there serious adverse outcomes arising from the problem? Based on the course material, what suggestions can you o..
Consider a simple one-period, closed economy model where the representative consumer has utility function u(C, l) and h available hours to divide between work and leisure. The representative firm has technology given by Y = zF(K, N^d ). Define a Comp..
Which of the following activities could be categorized as backward planning? A certain index for the cost of purchasing and installing utility boilers is keyed to 1988, where its baseline value was arbitrarily set at 100. What is the approximate cost..
Assume the market for a commodity is described by the demand and supply functions. Determine the equilibrium price and quantity in this market. Derive the inverse demand and supply functions, draw a graph to illustrate your answer, and compute the co..
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