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If the perfectly competitive market demand for cholesterol-free cookies shifts from QD,93 = 1,150 - 5P to QD,94 = 1,640 - 5P, and the market supply is given by QS = -100 + 2P, then the change in equilibrium price will be?
How does this alter the isocost and isoquant graph? Given these forecasts, where should you expand production?
What level of money supply should the central bank set next year if it wants an inflation rate of 4%? What growth rate should the central bank set for the money supply if they want inflation to be steady at 2% per year?
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
The fact that a percentage of the interest income paid by one corporation is excluded from taxable income has encouraged firms to use more debt financing relative to equity financing.
Explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing economies of scale and cite causes and examples.
Assume in this country they save 20% of their income, population grows at 3% every year also depreciation of capital occurs at 10% every year.
how much should you be able to get if you sell your future inheritance to the Neopolitan Bank (or any other bank) right now? Explain your work and why your answer makes intuitive sense.
If the company issues debt to finance the project what would be the value of the company. What would be the value of the levered equiy.
Distinguish between the crowding-out effect also the Ricardo-Barro effect. Elucidate how are the two effects related
How would your answer to Part A change if economic growth is average and Petal Providers' net profit margin is 7 percent?
If my preferences are such to I am indifferent among apples also mangoes but I prefer mangoes to cantaloupe then draw my highest indifference curve.
Analyze the equilibrium cost and quantity in this case and label it on your graph. Moreover calculate, deadweight loss, consumer surplus as well as industry profits.
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