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In 2009, the US Postal Service increased first-class postage rates from 42 cents to 44 cents. The service had been losing money. One of the reasons is increased competition from companies such as United Parcel Service and Federal Express. Another reason is the use of faxes and email, as well as electronic bill payment. With this decrease in demand for postal services, why do you think the Postal Service is seeking a rate increase?
Compute profit-maximizing output, price, and profit levels and Use the Lagrangian multiplier method, compute profit maximizing output, price, and profit levels in light of a parts shortage that limits output
What is the difference between supply-side and demand-side economics? How do the above concepts fit into these definitions? Which do you agree with most as a solution to stimulating growth, and why?
Solve for the equilibrium price and quantity. Assume the price is expressed in dollars and the quantity is defined in 1,000's of units.
Illustrtae what is the profit-maximizing level of price and quantity for this monopolist.
Explain how the US government managed to accumulate a debt of over 14 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
could you have both a comparative and absolute advantage in trading. If so, what if at all would be the benefit for your country to trade with any other country.
There are two goods in the economy, anchovies (a fish) and bananas ( a farm product). Draw the economy's production possibilities before and after a natural disaster that lowers the banana harvest but does not affect anchovies.
Many would consider the US Postal Service a publically good. Is this assumption valid.
Assume a indiidual has $8 to spend only on apples and bananas.
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
Illustrate what has been, also what will be, the short run and long run impact of the Federal fiscal policy which has been followed in the past few years.
Explain how each of the following would cause the yield curve to shift if between now and next year:
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