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Suppose a demand function is given by x(p). Then, elasticity of demand at p is -p d/dx logx(p). Using this, compute the elasticity of demand when x(p) = ap^-b, where a, b are positive constants. (We use notations ln and log interchangeably).
Life insurance policies typically have clauses stipulating the insurance company will not pay claims arising from suicide for a specified term—typically two years from the date the policy was issued. Use precise economic terminology to explain the li..
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis.
Assume that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition.
The foregone value associated with the correct rather than the next best use of a given asset is called" a.) Opportunity cost b.) replacement cost c.) historical cost d.) currect cost What is the correct answer
The company you work for recently has committed itself to implementing a program of social responsibility. After the company has gotten the commitment of top executives, planned the program, and appointed a program director, you suggest that a (n) __..
Pharmaceutical drugs have an inelastic demand, as well as computers have an elastic demand.
Be sure to clearly indicate what happens in the market for loanable funds, to net capital outflow, and in the market for currency exchange.
To measure risk, the capital asset pricing model uses
In a new, highly automated factory, labor costs are expected to decrease at an annual rate of 5%; material costs will increase at an annual rate of 4%; over-head costs will increase at 8%. The labor, material, and overhead costs at the end of the fir..
Two firms, A and B, compete à la Bertrand when selling a homogeneous good whose demand equals P = 400 − Q. Each firm’s constant marginal and average cost of producing the good equals 60. What is the equilibrium without a patent system? Is the patent ..
When all of the available factors of production are being efficiently used,
Relative to Tom, does Dick require more bananas, less bananas, or the same number of bananas to give away an apple.
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