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Suppose that a firm is in an industry which has a very rapid rate of growth (in sales and output), and is characterized by technological change and innovation. Firms attempt to maximize profits causing new firms to enter the industry attracted by profit potential. The result is that profits are competed away, leading to even greater innovation and change. Is there a limit to this continuous change? Will the structure of the market change? Explain
Classical economists of the 1930's did not believe that: Suppose the economy is initially in a recessionary gap and consumer and business expectations become less optimistic due to the War on Terrorism. In the long run, assuming that there is no poli..
You decide to open a restaurant in your neighborhood serving Italian fusion food. What market is this restaurant most like to me in – oligopoly or monopolistic competition and why? What do you believe the long term prospects are for profits and survi..
Which assumption(s) allow(s) us to draw in difference curves? A) the Assumptions are cardinal measurement and cardinal ranking B) The assumptions are rank ability and completeness C) The assumption is that the more we have of a good, the less we are ..
Discuss the effects of the change on the value of the currency and the country's balance of payments, using historical and current circumstances.
Elucidate how do you find the angle of the ray the isoquants are on. One more unit of capital does the firm no good. Draw the isoquants for this production function.
At what prices is the demand elastic? In what price interval is the demand inelastic? How does revenue change from the elastic to the inelastic zone of the demand?
What is the monthly interest rate? How much will Susan pay each month for 45 months? What effective interest rate is being charged?
How vegetarians sometimes have trouble making sure they get enough protein in their diets.
Calculating savings using the goods market equilibrium. Assume a closed economy (NX=0). Suppose net taxes are $100 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. Calculate public savings, priv..
Explain why an increase in the wage rate for autoworkers will generate more of a negative employment response in the long run than in the short run. Assume there is no productivity increase and no change in the price of nonlabor resources
Research and identify the salient features of the Fair Labor Standards Act (FLSA). Provide a definition of exempt and nonexempt employees. State at least three criteria that differentiate an exempt and nonexempt employee.
q1. like supermarkets full-service department stores like macys are generally in decline. what factors might these
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