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Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?
In that same situation, what would the four-firm concentration ratio be?
Exchange rate overshooting elucidate why permanent government spending increases are less effective in increasing output than temporary increases.
Demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society's economic welfare.
Aztec depends heavily on advertising to sell its products. Management at Aztec is allowed to spend $2 million monthly on advertising-What is Aztec's elasticity of demand for advertising?
One might expect company in monopolistically competitive market to experience greater swings in price of their products over the business cycle than those in an oligopoly market.
Illustrate what environmental factors or trends, (technology, social, political, demographic, global, etc. ) do you believe will have the greatest impact on critical thinking at work or in another area of your life.
Decline in the marginal propensity to consume by -.3 (i.e. MPC = 0.5: people consume half of their income). What is the new value of aggregate income?
Article: Why you should worry about big oil. The oil industry is in the business of extracting and selling oil. It is the goal of the oil companies to do this as efficiently as possible.
Classify the following utility functions as risk averse, risk neutral or risk seeking and draw the relevant diagrams
Illustrate what is the estimated size of the union salary advantage. How might this advantage diminish the efficiency with which labor resources are allocated.
Ten competitive saw mills currently supply lumber to a market whose demand q, depends on lumber price, p, as follows,
Given an increase in spending of $1,000, and a Marginal Propensity to Consume of 80%, what would be the total increase in the GDP what would the Multiplier be?
Explain the three types of unemployment and what types of government programs would be most effective in combating each type of unemployment?
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