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Michael runs a business that sells pianos. In an average year he finds that he receives about $900,000 in sales of pianos. From this sales revenue, Michael must pay the manufacturer $600,000 and pays wages and utility bills totaling $200,000. He owns the building where he shows and sells the pianos but could rent the building out for $160,000. He gave up a job paying $50,000 to start his own business.
The Bertrand and Cournot oligopoly models differ with regard to whether they compete on price of quantity. The profits from each strategy are significantly different. Why?
For all papers submitted to this class, APA (6th edition) format is required. The cornerstone of academic writing is "compare and contrast" which is what you will be doing when you discuss how your selected article applies to the concepts studied i..
Prepare a report that is designed to evaluate how the differences in the economic growth in both countries can be reconciled with your knowledge of theories of economic growth.
Is the company charging the optimal price for the product. Demonstrate how you know.
Why does collusion among oligopolists tend to be unstable? How can this be used to explain the recent price war among supermarket chains - explain why the UK supermarkets industry can be seen as an example of oligopoly and how oligopoly arises?
The demand for money in Friedman is
Assume that the home country experiences technological growth in the X sector such that α increases to 12. Describe the impact on the free trade price, the pattern of trade and gains from trade.
Tim buys 2 pizzas and sees 1 movie a week when he has $16 to spend. The price of a movie ticket $8, and the price of a pizza is $4. Draw Tim's budget line. If the price of a movie ticket falls to $4, describe how Tim's consumption possiblities cha..
Why do people have a demand for money? What does the demand for money represent and what factors influence the demand for money? Please explain.
Suppose the government aims to stimulate the economy as the result of the recessionary gap. Explain which macroeconomic policy action you would recommend. Give both the direction and the magnitude of your policy action.
In view of the weak economy of the last several years, explain which of the four (4) components of GDP had, or is having, the greatest positive impact in our economy. Use the following historical tables to support your response.
The economy has no unemployment and no inflation, but the government has determined that economic growth is too low and that the cause of this is a low level of investment. Using IS/LM, craft a set of policies that will stimulate investment BUT l..
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