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A monopolist can sell 10,000 units at a price of $5 per unit. Lowering price by $1 raises the quantity demanded by 2,000 units. What is the change in total revenue resulting from this price change?
A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..
Define the multiplier. Explain the economic reasons why the multiplier is greater than one (i.e. why the Eq. GDP increases more than the initial increase in spending (AE)).
Suppose you have an asset that costs $11 in time period zero and has an IRR of 18%. With a retained earning rate of 5% on your remaining $7, what is the highest loan rate that would support investing in this asset? Calculate.
Which of the following would be included in GDP?
A marine equipment manufacture is considering replacing its wired pendant controllers on its heavy-duty cranes with new portable infrared keypad controllers. The company expects to achieve a cost savings of $4,500 the first year and amounts increasin..
Think about the eight symptoms of "GroupThink" as discussed in the text. Have you experienced these symptoms in groups that you are a part of or are aware of? How was the decision affected?
Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend.If he belonged to the club, he could buy good 2 ..
Bob makes hand-sewn sweaters, 250 of them per year, sold for $200 each. His annual costs are: fabric for $300, thread for $50, a sewing machine that is leased annually for $40, and needles that are leased annually for $5. T
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
What does the change in his con- sumption reflect a substitution or an income effect.
Discuss the elements that make up Australia's Current Account. Outline the cyclical and structural factors that have caused Current Account Deficits in the last decade.
We know a car can be had for 60 monthly payments of $399. The dealer has set us a nominal interest rate of 4.5% compounded daily. What is the purchase price before interest?
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