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If a local movie theater sells tickets at different prices (senior citizens versus young people, matinee versus evening prices) is the local movie theater a monopoly? What about the concession stand inside the theater?
What is a typical indifference curve for the case in which the marginal utilities of both goods are positive and the marginal rate of substitution of hamburgers for Cokes is diminishing. Explain the relationship between the indifference curve
Fiscal policy also decrease the dollar like monetary policy.
Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?
Elucidate why the U.S. would subsidize the short run cost of production for tobacco farmers in foreign countries.
Calculate the annual worth (years 1 through 7) of Merchant TruckingCompany's cash flow. Use an interest rate of 10% peryear. Year 0 1 2 3 4 5 6 7 Cash Flow, $ millions 450 -40 200 200 200 200 200 200
A large processing plant is trying to decide between two air scrubbing units. The unit is required by clean air regulations and will be replaced by an identical unit of itself at the end of its useful life into the foreseeable future.
Aero Company currently has net income of $3 million and 1. million common shares outstanding which sell for $20 per share. Aero has decided to issue new stock to raise $4,000,000 to expand its operations.
Suppose that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to.
What is the purpose of the two fields of study, neuroeconomics and behavioral economics? Why might people tend to be overconfident? Use the following information to determine the total fixed costs, total variable costs, average fixed costs, averag..
Assume the following payoff matrix in which the numbers indicate the profits in millions of dollars for a duopoly based either on a high price or a low price strategy.
Ted has preferences given by the utility function U(K,L) = K + 2L where K =pounds of Kale per month and L = pounds of lettuce per month. a. What is Ted's Marginal Utility of Kale? What is Ted's Marginal Utility from Lettuce?
Milton Friedman faiths in a steady growth monetary policy. Illustrate what does that mean and critique this approach.
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