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Which of the following questions would most likely to be a topic for a microeconomics class?
a) what would be the impact on competition in the cell phone market if there had been an ATT takeover of T-mobile?
b) what is the main reason for the low inflation rate in the United States?
c) what are government policies that would lower the unemployment rate?
d) how does the Federal Reserve use the supply and demand for money to change interest rates?
A company is considering investing in a new printing press, and is looking at one of two options. The first printing press has an initial cost of $30,000, a salvage value of $2000, and annual operating costs of $1500 per year. Manually calculate the ..
The Fireyear and Goodstone Rubber Companies are two firms located in the rubber capital of the world. These factories produce finished rubber and sell that rubber into a highly competitive world market at the fixed price of £60 per ton. The local gov..
A woman managing a photocopy establishment for $25,000.00 per year decides to open her own duplicating place.
It is generally expected that an economic downturn will lead to an increase in inflation. Full employment output is defined as the output that can be achieved if everyone in the labor force has a job. According to the Keynesian model, injections will..
With flexible exchange rates, trading partners usually are better off if they coordinate their monetary and fiscal policy. Coordination allows: Note: you may have to solve this one by eliminating possibilities.
Commodore Candies produces a 3-pound box of chocolate that it sells for $6.75 to various retail outlets. Commodore’s output capacity for this product is 10,000 units per month, with a one-shift operation, but it can produce more using overtime labor,..
At what level of output will this firm maximize profit. Elucidate what is the level of profit for every unit of output produced at equilibrium.
operating deficit is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand.
Suppose you want to infer expected future exchange rates in a less-developed country that has free-market-determined interest rates but does not have a forward exchange market. Is there any or way of inferring expected future exchange rates. Unde..
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $938.97, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $834.01. Please calculate the..
Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75. How much money should the government spend to eliminate this GDP loss? Calculate the tax cut needed to eliminate this GDP loss.
Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the..
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