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What are the similarities between the life-cycle and the permanent-income hypotheses? Do they differ in their approaches to explaining why the long-run MPC is greater than the shortrun MPC ?
Two firms currently produce the goods q1and q2separately. Their cost functions are C(q1) = 25 + q1, and C(q2) = 35 + 2q2. By merging, they can produce the two goods jointly with costs described by the cost function C(q1, q2) = 45 + q1+ q2.
consider a hypothetical consumer richard who spends all his income on two food items pizzas and burritosa if richard
An asset has an initial cost of $200,000, a salvage value of $25,000, and a recovery period of seven years. a. Find its book value after six years using the MACRS method. b. Find its book value after six years using the double declining balance metho..
List the similarities, paragraph-by-paragraph, between the two reports
A heavily indebted government may end up in a vicious circle, where increasing debt leads to higher interest rates and lower growth, which increases debt even faster with subsequent even higher interest rates and lower growth etc.
b. What is the relationship between good X and Y (i.e. whether they are substitutes or complements) c. With the aid of a well-labeled diagram, show what happens to equilibrium price and quantity of good X, if the price of good Y increases.
Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products
Suppose that college education raises a person's wage by $30,000 per year, from $40,000 to $70,000. Assume that the interest rate is 3 per cent and there is no growth in wages. Suppose you are a high school senior and deciding whether or not to go..
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk. Coffee costs $1 per ounce and milk costs $0.5 per ounce. How much coffee and how much milk will Sheila buy per..
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $37,000 per year. The store is located on prime real estate in a college town. World of V..
Do economists have any particular expertise at making normative arguments?
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