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The demand for gasoline is inelastic and the demand for t-shirts is elastic. Let's assume that Company A produces and sells gasoline and Company B produces and sells t-shirts.
a. Explain what happens to total revenue if Company A increases its prices.
b. Explain what happens to total revenue if Company B increases its prices.
The economy of the United States is described by the following aggregate production function: Yt = minimum (Kt, Lt). Saving occurs at a constant rate s. Each period, capital depreciates at a constant rate δ. The population is constant. What is the e..
Several medical studies have shown that drinking green tea is good for the heart and preventing cancer. How would such a study affect the public's demand for green tea at it's current price? How would it affect the type of plants that farmer's p..
Describe the roles of the President and Congress in the federal budget process. What are the problems with the federal budget process? Why haven't we had a budget for 5 years? Any potential reforms? What are the 3 different budget philosophies?
When one is conducting an ROR analysis of mutually exclusive service projects
Consider the following: Clark was considered to have “thought out the concept of marginal utility and its influence on exchange value” without having read Jevons, even though Jevon’s had already published. Discuss how this affected his contributio..
What are the basic issues involved in recruiting and selecting managers for foreign assignments? Why is performance appraisal important for international firms? How does international HRM for non-managerial employees differ from that for managerial e..
All loans shall be computed at an annual percentage interest rate(APR) of 3.75%. It is assumed that you will need the loan for four years (eight semesters). You will not make any payments towards the principle of the loans while you are attending col..
Flexible Felix views present and future consumption as imperfect substitutes and he discounts future consumption by a bit to reflect the uncertainties of his life. His utility function is given by U(C_0,C_1 )=3C_0+(4C_1) ⁄ ((1+δ) ) where δ (which is ..
Explain the market for physician services as a monopolistically competitive market (rather than a purely competitive or a purely monopolistic market). How does the price in such a market compare with the two “extreme” cases of pure competition or pur..
Do you recommend this strategy based on the information he has obtained
What are the qualitative differences between oligopolistic, monopolistic, and competitive markets? What market structure does WalMart operate in? What evidence can you provide?
A taxpayer (of a particular profile) can either comply with the IRS code, or cheat and receive some benefit. The IRS can either audit the taxpayer at a cost or do nothing. If the taxpayer cheats and the IRS audits then the tax payer faces penalty (fi..
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