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We saw in Section 18-2 that stock prices reflect expectations regarding the future dividend payments of firms and the future direction of interest rates. Given this, why might stock prices be a good predictor of recessions?
A monopsonist's demand curve for labor is given by w = 12 - 2L, where w is the hourly wage rate and L is the number of person-hours hired. a. If the monopsonist's supply (AFC) curve is given by w = 2L, which gives rise to a marginal factor cost cur..
What is the marginal cost per unit for the first 50 units $ per unit for the first 50 units. What is the marginal cost for units 51 and higher? $ per unit for subsequent units. For each of the first 50 units, does MR exceed MC For the units 51 and..
Profit sharing is not widely practiced in the franchise business. What are its disadvantages relative to revenue sharing?
John's Lawn Mowing Service is a small business that acts as a price taker. John's short-run total cost is given by STC = 0.1q2 + 10q + 50, where q is the number of acres John chooses to cut a day. Total fixed cost is TFC = 50 and total variable co..
Revenue at a major cellular telephone manufacturer was $1.4 billion for the nine months ending March 2, up 97 percent over revenues for the same period last year. Management attributes the increase in revenue to a 137 oercent increase.
The market for semiskilled labor can be represented by the following supply and demand curves: ED = 32000 - 4000w and ES = -8000 + 6000w where E = millions of person hours per year and w = the wage in dollars per hour.
Suppose that P = 400 - 20Q and that there are 3 firms, each with a marginal cost of 30. Suppose that firms 2 and 3 merge. The merger allows the combined firm to lower its marginal cost to 20. Does the merger lead to a higher or a lower cournot equ..
Draw an aggregate demand and supply diagram for Japan.
Alternatively, he estimated that he could sell an extra 1,200 hamburgers per day by keeping the restaurant open for two more hours per day at a cost of $50 per hour. Which of these two alternative ways of increasing output should Mr. Wilson use
You choose left tail test that difference between the two samples' means is bigger or equal than zero, with α=0.05. What is your pooled estimate of standard deviation? What is the calculated t-statistic for the test
Moving along the demand curve, quantity demanded decreases 8 percent when price increases 10 percent .a. The price elasticity of demand is calculated to be. b. Given the price elasticity calculated in part a, demand is (elastic, inelastic, unitary e..
Suppose that the home currency start to appreciate against other currencies, this should the current account balance, other things equal
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