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What amount must be deposited into a savings account that pays 8% interest if the inflation rate is 10% and you want to set aside enough money to purchase a red tape cutting machine ten years after the deposit? The current cost of a red tape cutting machine is $10,000.
Suppose that A is a small open economy that takes world prices as given. What would be the effect on wages and rents in A if it were to experience an inflow of foreign capital Use a diagram to explain your answer. Which groups would favor this cap..
Suppose we observe that as a firm decreases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand. Which of the following will not cause a decrease in the demand for apples.
When do assumptions create in conjunction with economic theorizing have to become realistic? Can unrealistic assumptions provide useful outcomes?
If Congress wants to use fiscal policy to prevent a recession, suggest whether they should cut taxes if there is a suspicion of a recession, cut taxes when there is confidence that a recession will happen
During the recession in the early 1990s, retailers observed that consumers were spending a lot more time searching for good bargains than ever before, which led the retailers to lower prices.
What is total variable cost when 100 units of output are produced and what is average fixed cost when 150 units of output are produced?
The value for F must make Matt simi- larly indifferent: Solving this equation yields Thus, the strategy profile presented is a subgame perfect Nash equilibrium when and Given this equilibrium, let's calculate the probability of Fiona and Matt e..
What is the effective rate of tariff protection (ERTP) for the U.S. shoe industry now and what is the U.S. shoe industry's value added for each pair of shoes?
Some states are planning that ethanol be mixed with gasoline to comply with anti pollution laws. Ethanol can be made from corn. Determine what effect are these rules having on the equilibrium price and quantity of corn?
If Starbucks raises its price by 7 percent and McDonald’s experiences a 0.3 percent increase in demand for its coffee.
There're 10 auto firms in this problem each showing their market share percentage (US auto industry). The proposed merger involves Ford 22% and BMW 1%.
Use the first order conditions for profit maximisation to show that a monopolist will never produce on the inelastic portion of his demand curve.
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