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Assume that there are a large number of identical firms in a competitive industry, each with the cost function:
TC = 25+4q+q2
a. What is the minimum price at which firms will continue operating in the short run? In the long run?
The Hanover Manufacturing Company believes that the demand curve for its product is P = 5 - Q-Evaluate the wisdom of the firm's pricing policy
Suppose the payoffs are instead as follows If they both open at location A, theater earns 12 while the restaurnat earns 8. If both open at B, the theater earns 8 and the restaurant earns 12. IF they open at different locations, they both earn 2.
The similar same set of price quantity combinations are utilized to compute the price elasticity of demand
Assume that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account on the 1st day of the month,
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
Firms can now not only choose their prices but can also choose their location. This happens in two stages. In the first period, firms choose their locations and in the second period, they choose their prices. The transport cost of the consumer is ..
Illustrate what is the relationship between the variable that you selected and the economy. What trends do you see in the data sets.
An economy is inlong-run macroeconomic equilibrium when each of the followingaggregate demand shocks occurs. What kind of gap—inflationaryor recessionary—will the economy face after the shock
Why has the Federal Reserve selected this policy at this time? What efects does the Federal Reserve expect this policy to have on the U.S. economy?
Illustrtae the difference among concretionary and expansionary fiscal policy.
Suppose the demand for what you "sell" rises relative to the supply of what you sell. a. How would you know demand has increased (What is the first piece of information which would lead you to conclude that demand has increased)
Steve plans to take the contract that provides him with the highest net present value. At what discount rate would he be indifferent between the two contracts.
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