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An increase in the market price of men's haircuts, from $15per haircut to $25 per haircut, initially causes a local barbershop to have its employees work over time to increase the number of daily haircuts provided from 35 to 45. When the $25 market price remains unchanged for several weeks and all other things remain equals well, the barbershop hires additional employees and provides 65 haircuts per day. What is the short-run price elasticity supply? What is the long-run price elasticity of supply?
Suppose a firms benefit and cost structure is given by the following respectively B(q) = 400Q-5Q^2 C(q) = 3Q^2 what is the output level at which net benefits are maximized?
A narrowly diverse culture is always desirable in organizations. The chain of command outlines the planned configuration of positions, job duties, and the lines of authority among different parts of the organization. Task-oriented behavior involves c..
If the stock price rises, the price of a call option on the stock ________ and that of a put option _________ . (Why?)
In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or i..
A licensing agreement is an arrangement whereby a licensor grants the rights to intangible property to another entity (the licensee) for a specific period, and in return, the licensor receives a royalty fee from the licensee. Remember that technologi..
Why are usage-based insurance rates lower than at-rate insurance fees? Give two separate reasons and explain.
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
Calculate and graph what happens to G, AD, GDP, and Prices if the government increases government spending by 100 billion and the MPC = .80. Calculate and graph what happens to T, C, AD, GDP, and Prices if the President raises taxes by 100 billion an..
How should the federal reserve react if they desire to bring inflation down to 3% Wren will they achieve that goal? (Hint: maintain plenty of decimal places.)
Which is true for a purely competitive firm in short run equilibrium?
What are the various ways in which the Federal Reserve influences the economy? What important tools do they use in influencing the commercial banking system?
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 100 bunches of bananas. In the two-person economy that George and John set up, fish sell for 3 clamshells each, boars sell ..
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