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Peter spend all of his income on 5 units of good x and 6 units of good y. The price of x is twice the price of y. Peters' income doubles and the price of y doubles, but the price of x stays the same. If Peter continues to buy 6 units of y, what is the largest number of units of x that he can afford?
Describe and explain price and output determinations for firms. How does the change from the short run to the long run for a Monopolistic Competitor? What effect does product differentiation have on the firms approach to price and advertising?
Suppose the demand curve for QD = 500 - p, and the marginal revenuue function is MR = 500 - 2Q. The monopolist has a constant marginal and averge total cost of $50 per unit. Find the monopolist profit-maxmizing output and price. Calculate the monopol..
Firms operate in a market structure that approaches perfect competition typically are known as "price takers", i.e., the individual firm can only expect to get the price dictated by supply and demand conditions and the decisions of the individual fir..
Do you agree? Why or why not? According to Krugman, how do you explain the fact that since the nancial crisis the US government budget decit has exploded, yet at the same time the US Current Account decit has actually decreased. What happened to t..
If Romaine lettuce and Iceberg lettuce are substitute products, an increase in the price of Romaine lettuce will ______ the demand for Iceberg lettuce. A. shift inward B. shift outward C. either increase or decrease (depending on whether lettuce is a..
Due to the recent progress in the area of artificial intelligence and now that there is a stronger possibility that computers may actually be equipped with enhanced intelligence, do you expect an increased use of anthropomorphic user interface? Wh..
You see an advertisement for a book which claims to show how you can make $1,000,000 in investment profits in a year, with no initial investment required and no risk of any loss. The book costs $500. Would you buy it? Why or why not?
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($1500 deductable), life insurance equal to a year's salary, vacation time based on length of employment with th..
What would be the effect on the net wage employers paid? (The net wage would be the wage women received less 50 cents.)
What are the four types of a tiered infrastructure? What additional features does platform-as-a-service (PaaS) offer beyond software-as-a-service (SaaS)? How do efficiency and effectiveness metrics differ?
In the last few years the supply of circulation money has increased dramatically but inflation has remained low. Why?
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
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