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What do economists mean by the demand for money? What is the advantage of holding money? What is the disadvantage? Why does an increase in the interest rate decrease the quantity of money demanded?
What is the profit-maximizing level of output and price for the monopolist? Now suppose that this rm is in a perfectly competitive industry, still facing the same marginal cost curve. (Assume that the average cost curve of this rm always lies below i..
U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States? Do farmers have much reason to worry?
Explain the difference between fixed-production technology and variable-production technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology Should they d..
production of a particular product is characterized by external scale economies and the product is produced in two
After carefully reviewing the Federal Reserve Bank of San Francisco information on U.S. Monetary Policy, discuss the pros and cons of having the monetary and fiscal policies of the nation set by different bodies.
Bill decides to start a 401(k) investment account beginning next year with an initial investment of $500. His plan is to make annual investments which increase by $100 each year. If bill earns 10% on his investment, his 401(k) account will be worth h..
In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred - Evidence from empirical studies of long-run cost-output relationships.
Write down the expressions for how much a consumer at location d would value the products sold by firms A and B, if they set prices Pa and Pb? Based on your expressions in (a), how much will be demanded from each firm if prices Pa and Pb are set?
How might this lead to further interference by central planners into family choices - What would be the effect of raising the price of gasoline in the United States to $5 per gallon?
What type of industry benefits the most from technological innovation?
What is the subgame perfect pricing policy for Tony?
A firm has two plants, one in Mexico and one in the United States and it cannot change the size of the plants or the amount of capital equipment. The wage in Mexico is $5. The wage in the U.S. is $20.
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