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When a small firm expands the scale of its operations, why does it usually first experience increasing returns to scale?When the same firm grows to be extremely large, why might a further expansion of the scale of operation generate decreasing returns to scale?
According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one found in this chapter to represent the sector of the economy devoted to collage education.
devaluation was comduct after the purchase and additional investment were completed, what is the new ROI.
When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased-Using your knowledge of game theory, what do you thank disrupted McDonald's plans?
State the essential difference between the classical and Keynesian schools of thought. If you were a public policymaker and received conflicting advice from a classical and a Keynesian economist, how would you choose Explain.
Assume the market can be described through the following three sources of systematic risk with associated risk premiums.
Illustrate what are the four supply factors of economics growth. What is the efficiency factor? Please illustrate these factors in the terms of the production possibilities curve.
The Law of Supply movement along the curve due to the price effect occurs because people can buy only so much of a product.
Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4. Find out the optimal values of both goods (Y*,X*) and Utility?
Explain why do economists believe that the CPI overstates the rate of inflation
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
Consider the 2-period environment from class.The economy is populated by two types of agents A and B. There is an equalnumber (N) of each type. The agents have preferences which incorporate impatience.
A number of companies exist that specialize in "payday loans." Payday loans are small loans often for a few hundred dollars or less that are made to low-income borrowers. Often these borrowers have poor credit histories and few assets and would ha..
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