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Problem: Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized investments for him to use it. They agreed upon price of $5,000. To use Initech's software, Andrew makes $2,400 in sunk capital investments and spends 65 hours learning how to use Initech's software, which is very different from other software packages. Both Andrew and Initech view Andrew's time as worth $24 per hour and Initech is fully aware of the investments Andrew must make to use their product. After Andrew's investments were made, Initech came to Andrew and asked for more money. What do you think is the new price Initech requested Andrew to pay?
Using a correctly labeled graph with both the short-run and long-run Phillips curves and the relevant numbers from above, show the current long
Fall proportionately more than the change in GDP, Fall proportionately less than the change in GDP, Rise proportionately more than the change in GDP
Suppose Jean Splicer, an investor, buys $500,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares.
After you turn in your report, you regret not having been able to make more confident statements about the validity of the manufacturer's claim.
chez henri is a restaurant chain that operates in 40 different cities. it hired an economist to estimate the factors
one is to convert the actually a nominal gdp number to a real gdp number. the other is to convert a nominal gdp growth
What is protectionism? If Canadian government imposes a quota explain using a diagram who are gainers and who are losers?
Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 percent, what is: The percentage change in the quantity of bananas you buy?
Assume that in long-run equilibrium the minimum point of the LRAC curve for a table manufacturer's tables in $200 per table. Under conditions of monopolistic.
Below are supply and demand functions for two markets. One of markets is for BMW automobiles. Explain which diagram most likely represents which market and why.
A long-run supply curve is flatter than a short-run supply curve because firms can enter and exit a market more easily in the long run than in the short run is it true or false.
Discuss a market you have recently participated in, either professionally or personally. Why is it important for you to take part in this market.
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