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Using the assumptions of Perfect Competition, explain how such firms earn no economic profit in the long run.
How does perfect competition result in the best outcomes from both consumers and producers?
How might innovation be seen as both creative and destructive?
Why tax multiplier is smaller than the multiplier for the same amount of government spending? Please explain with the following data: $1 million tax cuts, $1 million increase in government spending, MPC=0.75.
Explain two elastic and inelastic goods that you have recently purchased/not purchased when the price increased of those products. Please relate your answer to the market characteristics.
You hire a consultant to estimate the elasticity of demand for widgets, the product that your company produces and sells. When you receive the report it indicates that the elasticity of demand for widgets is -0.6. Briefly explain what that means. Wha..
Indentured servitude is no longer legal. An indenture was a contract binding a person to work for another for a given length of time (usually for many years), as an apprentice to a master or an immigrant to service in a colony. Such a relationship wa..
Illustrate what means do they use to hedge against exchange rate risk. Using this information.
Arguments in favor of having developing countries focus on exporting manufactured goods include
Illustrate why the store's short-run equilibrium by plotting demand marginal revenue, average total cost,and marginal costs.
What is grouping ambiguity? If a claim is made by a disinterested party, we know that. What is the meaning of the rhetorical device called a stereotype?
It is often claimed that an added benefit of pollution abatement projects sponsored by the government is the increase in employment generated by these projects. Evaluate this by answering the following. Where do governments obtain the funds to undert..
If the economy is currently producing 40 units of cotton and 6 units of wheat, then what is the approximate opportunity cost of producing 10 more units of cotton?
Widgets are sold by a constant-cost industry where each firm has fixed costs of $60 and each firm has the following marginal cost curve: In long run equilibrium, what is the price of a widget? The city would like the price of widgets to change. Plan..
What would the Consumer Surplus, Producer Surplus, and Total Surplus be for the quantity demanded =1000-P and the quantity supplied =3P-120?
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