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If Krimm Prints sells picture frames for a price of $70, and faces a marginal cost of $40, what is the Lerner Index? Interpret the Lerner Index. What is the demand elasticity?
The economy of Alpha can be decribed by the Solow growth model. The following are some characteristics of the Alpha economy: What is the steady-state growth rate of output per worker in Alpha? What is the steady- state growth rate of total output in ..
Which one is considered unemployed?
In a world where the public holds no currency but where banks keep fractional reserves against deposit liabilities, explain how an injection of new base--say from The Fed’s purchase of securities-- lead to new M1 which is a multiple of the new base. ..
Should the Miami plant be closed or continue to operate at a loss in the short run? How would you explain to the incorrect party that he is wrong?
Based on the Solow model’s conclusions about population growth, comment on the effects of immigration on a country’s: (a) aggregate output level; (b) capital-labor ratio. (Note: in this case we’re concerned with the level of population, rather than t..
EZ Sharp Industries, Inc., manufactures the Kleen Edge(TM) line of diamond-abrasive cutlery sharpeners for home use.
A local landfill currently charges $100 per half ton load of waste to dump. The marginal costs to the landfill of operating the dump are about $60 per half ton load of waste. A nearby incinerator charges $120 per half ton of waste, and it costs about..
The president of the US announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the public believes him. If the public believes the president's prog..
The smith company made and sold 10,000 metal tables last year. When output was between 5,000 and 10,000 tables, its average variable cost was $24. In this output range, each table contributed 60% of its revenue to fixed cost and profit.
Read Chris Tilly, “Shaking the Invisible Hand” (Real World Micro, article 1.2). What is the “Invisible Hand” theory? What are the political implications? List some of the assumptions made by economists who believe in the “invisible hand” and oppose g..
q.q1. explain how do i calculate the midpoints and marginal costs of 1 thing in terms of the other and the other thing
When the fed raises the federal funds rate, eventually there is.
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