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Distribution of costs and benefits Suppose that the government decides to guarantee an above market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the following gains and losses from such a price support:a. The loss of consumer surplusb. The gain of producer surplus in the short runc. The cost of running the government program(assuming no storage costs)d. What is the total cost of the program to consumers?e. Are the costs and benefits of the support program widespread or concentrated?
Barramundi Inc. stock is currently selling at $40 per share (its equilibrium price) provide that the risk free interest rate is 8% and the equilibrium risk premium on the market portfolio is 6%.
If it will cost us approximately $0.75/bottle to supply more Coke to our consumer what should we do if our goal is to maximize profit.
The different market structure and how they determine the degree of competition among firms and how they maximise profits in the short run and long run.
Explain is low stable inflation also deflation better for the economy.
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..
What do you think that Antitrust Department should punish Google for being a "monopolist". Did the author of the article think so.
Compute the intercept of the budget line on the "movie ticket" axis. c. Compute the intercept of the budget line on the "DVD rental" axis. d. Find the slope of the budget line when movie tickets are on the vertical axis and DVD rentals are on the hor..
Your current job pays $25,000 per year (after taxes), but you could earn $55,000 per year after taxes if you had a MBA at Southern University.justify your planned MBA at Southern University.
Explain why is economic growth important also annual growth rate be of great significance over several decades.
Elucidate how the price level will be affected by these expenditures in the short-run. Explain how GDP is affected in the long-run.
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
Show the changes to the T-accounts for the Federal Reserve and for commercial banks when the Federal Reserve buys $50 million in U.S. Treasury bills.
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