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Suppose that a rock 'n' roll band produces "gigs" for which it gets paid $5,000 each (the going price). Suppose also that the band paid $10,000 for fixed equipment. The four "musicians" each demand $400 for each gig (treat as salary, as if they were other people). They pay set-up people $100 per gig. Electricity is not paid for. Assume that each musician could be earning $200 per gig if s/he would become a "portable disc-jockey". If the band produces 8 gigs, what is its economic profit?
Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market.
Compare the strategic role of domestic transportation within the United States and the strategic role of international transportation. How do strategic concerns impact the firm, and how might a firm respond in practice?
Suppose we are at steady state in the Solow Model. Suddenly we have a significant technological advance. Show, using properly labeled graph(s), how this improvement in technology affects the steady state levels of income per worker, consumption per w..
q1. assume that restaurant charges 11 meal for 180 meals as well as that the marginal cost of the 180th meal is 8 in
Currently what indictors are evident that There is too much or too little money within the economy? How is monetary policy aiming to adjust This?
In some states, mining for coal leaves large amounts of rubble, which poses flooding problems; causes land damage also is unsightly.
Explain how a dead weight loss can be generated in an imperfect market and also in a case of a negative externality. What policies government can use to try to eliminate the deadweight loss? Effect of Price Ceiling and a Price Floor-Price Floors and ..
You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year.
Suppose the U.S. economy is in a recession and faces relatively high inflation. List the twin problems which policymakers face. List the monetary policy approaches the Fed could take to resolve each problem (i.e, do not list the policy tools—just des..
q. recall that is the economy continues to be strong abc company may need to increase its production by about 50
Discuss the author(s) contention that in addition to ensuring the solvency of social security, the government should also consider how to increase benefits for recipients. How much would this increase in benefits add to the burden on future taxpayers..
If a country's Central Bank purchases assets (e.g., bonds from banks), the economic result is:
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