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Wendy sells vending machines. She can sell 9 machines if she charges $1,000 per machine; 8 if she sells them at the price of $1,100 per machine; 7 at the price of $1,200 per machine, and 6 at the price of $1300 per machine. Each vending machine costs $500 to produce and bring to the market. How many vending machines should Wendy sell if she wants to maximize her profit?
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Draw the game tree associated with this situation. Using the backward induction method discussed in the online class notes, what will be th..
Assume we refused to sell goods to any country that reduced or halted its exports to us.
What did the recent "Sovereign Debt Crisis" in Europe have to do with Fiscal Policy?What are the advantages and/or disadvantages of using monetary policy instead of fiscal policy?
Give two reasons to defend your chosen business cycle and identify the right fiscal policy that should be followed: contractionary or expansionary.
1. The quantity of a good demanded rises from 1000 to 1500 units when the price falls from $1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately:A. 1.0B. .16C. 2.5D. 4.0
Explain. Problems and Applications a. Dutch pension funds holding U.S. government bonds b. U.S. manufacturing industries c. Australian tourists planning a trip to the United States d. an American firm trying to purchase property overseas
Compare Australia with any other advanced economy or developing country and discuss their economic growth during last.
Given the industry's concern that workers shirk, they start employee at $10 and increase the pay by $0.40 each year they are on the job.
Economist George Stigler once wrote that, according to consumer theory, "if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises."
Would the countries have borrowed more or less if their economies had been privatized earlier?
Compute producer surplus, how much is the difference between the producer surplus and profit in this case
Collect an article from an Australian newspaper that relates to the current Australian macro-economy or a macroeconomic issue or problem. In a paragraph indicate which section of the course it applies to, why you selected the article and provide a br..
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