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1. (Sources of Inflation)What are the two sources of inflation? How would you illustrate them graphically?
2. (Anticipated Versus Unanticipated Inflation) If actual inflation exceeds anticipated inflation, who will lose purchasing power and who will gain?
Run OLS to estimate the inverse demand function(P = f(Q)), determine how much confidence do you have in this estimated equation? Apply algebra to then find the direct demand function
The "Big-Deal" Company has purchased new furniture for their offices at a retail price of $100,000. An additional $20,000 has been charged for insurance, shipping, and handling. The company expects to use the furniture for 10 years (useful life = ..
The Mineola Corporation hires a consultant to estimate the relationship between its profit and it output. The consultant reports that the relationship is f = -10 - 6Q + 5.5Q2 - 2Q3 + 0.25Q4 a. The consultant says that the firm should set Q equal..
Provide an argument to establish that the optimal allocation must be Pareto-ancient. What assumptions have you placed upon the social welfare function?
What is the own price elasticity of demand when Px = $354? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $354?
In the game above, how much does Labor earn if they can move first?
Fit the logarithmic form of your demand function for your category of expenditure for the periods 1959-1990 and 1959-1994 and perform the Chow test of predictive failure.
Now consider the production of Good Y. Unlike manufacturing Good Y, in this case, humans and robots are complements. The production function for Y is given by Y=f(H,R)=min(H,R). Again, the wage for humans is $15/hour
Suppose that demand changes to Qd =600 -2P. Find the equilibrium price and quantity, and show this on your graph.
In 1989, the Detroit Free Press and Detroit Daily news (the only newspapers in the city) obtained permission to merge under a special exemption from the antitrust laws. The merged firm continued to publish the two newspapers
Why are the marginal revenue numbers less than the price in the table on page 22-5? You can use either the original or the new MR numbers to answer this question. Note that this is different from pure competition, where P = MR. In other words
In city B, the value of an apartment also falls the further it is from the business center, yet the fall goes down gradually. For example, an apartment one kilometer away will lose 20 percent of its value and an apt 2 kilometers away will lose onl..
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