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Monopolistically competitive firms try to differentiate their products in order to eliminate substitutes. What are the comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of labor? What are the measures? Can you provide an example?
If one is preparing a contingent valuation study, what are the sources of bias that one migh encounter? If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project’s cost to ..
Compute the range of the international relative price of soft drink cans at which the two countries would trade. Suppose that discovery of a new method of production (technological progress) in Italy doubles the marginal product of labor in snowboard..
If there are no fixed costs of production, the q that solves the firm’s first-order condition is
Assume the current equilibrium price of cheese pizza is $10 also 10 million pizzas are sold every month. After the federal government imposes
Consider an open market purchase by the Fed of $16 billion of Treasury bonds. What is the impact of the purchase on the bank from which the Fed bought the securities?
Using a supply- and- demand graph and assuming competitive markets, show and explain the effect on equilibrium price and quantity of the following:
The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. As a manager, what are some practical things you could do to raise marginal product per employee th..
What is the R-square of the regression - Can you forecast (predict) what happens to the average price of a house if the number of bedrooms increases from 3 to 4 (keeping everything else constant)?
How does nominal GDP targeting differ from real GDP targeting? Why is real GDP targeting the riskier of the two strategies? Currently, no major central bank closely targets the money supply. Why do you think this is the case? Still, no major central ..
The banking system is a fractional reserve banking system with a desired reserve deposit ratio. Banking system is a fractional reserve banking system.
Suppose that the oil refining industry releases one unit of waste into the atmosphere for each unit of refined product. Find the equilibrium price and quantity. Suppose the government imposes a corrective tax of T per unit of unit of emission. How la..
Suppose that you made a $1, 200 purchases on your credit card two years ago to pay for an unexpected car repair and have only made the minimum $50 monthly payments since then. What is the effective annual interested rate of your credit card (commonly..
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