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Question: 1. Show what happens to profits and profit maximizing output when price increases. Please start with a firm that is earning positive economic profits.
2. Show what happens to profits and profit maximizing output when price decreases. Please start with a firm that is earning negative economic profits.
Elderly population is growing more rapidly than the total population - the number of workers is rising slowly, retirees are rising quickly. If total expenditure were frozen, what would happen to benefits per retiree
Explain how monetary policy affects interest rates and aggregate demand. Analyze how fiscal policy affects interest rates and aggregate demand.
Suppose a firm uses two inputs, 1 and 2, in the production of a final good. In the short run, if input 2 is fixed and its price goes down, what happens to the firm's profit?
Calculate the firm's profit or loss. Is the firm making a profit or a loss and explain the Short Run Shut Down Rule. Should this firm shut down? Please explain.
Suppose that the demand for gasoline is given as P = 3.6-0.002Q where P is the price of gasoline in $ per litre and Q is liters of gasoline per day. If you know that current price of gasoline is $1.3,
The ability of the Federal Reserve to set the growth rate of the money supply is a good example of goal independence.
According to a Congressional Budget Office report, the burden of a carbon tax would fall isproportionately on low-income households. What does the report mean by the "burden" of the tax?
Economic Policy is important for growth and Development of many countries. The starkest example of what the gains and losses from policy can be comes.
As a consequence of a 1976 court case that Ralph Nader won against an airline that had "bumped" him, the federal government adopted a rule requiring airlines to compensate people who were denied boarding despite holding a confirmed reservation. As a ..
What was the cost of goods sold if the firm's tax rate was 35 percent?
As a two-stage game using a game tree with Company B going first. Solve this game and identify the Nash Equilibrium and does either Company have a first-mover advantage?
What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P (price) and Q (output). Then, plot the MC, D, and MR curves graphically and illustrate the equilibrium point.
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