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Suppose15 percent increase in the price of airlines causes a 10 percent decline in the quantity demanded, What is the elasticity of demand for airlines?
suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00. a)suppose P
You wish to retire at 60 and, at the end of each month thereafter for 25 years, to receive $6,000. Assume that you begin making monthly payments into an account at age 23 and continue these payments u
1) Assume that the gold-mining industry is competitive. a) Illustrate a long-run equilibrium using diagrams for the gold market and for the a representative gold mine. b) Suppose that an i
Frank owns a soda fountain and sells milkshakes. he sells 50 milkshakes per day for $5 each. his daily cost is $290, of which $30 is fixed cost. What can you say about Franks short run decision rega
What is one advantage of a centrally planned economy? A. low unemployment due to guaranteed jobs B. high levels of consumer satisfaction C. quick adjustment to changing conditions&nbs
Suppose that a business has developed a very high-quality product and operates more efficiently in producing that product than any other potential competitor. As a consequence, at present it is the on
A firm with a kinked demand curve experiences an increase fixed costs. Explain how the firm's price, output and profit change.
Due to an increase in her rent, Isa needs to cut back her spending on other items. Which of the following types of goods will Isa consume less of? A. substitutes B. normal goods C. infe
four companies produce virtually all breakfast cereal. how might this concentation of market power affect market outcomes? what should the government do, if anything?
As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles? A. Compliance with the law in every situation B. Doing good to those
A firm's marginal cost of production is constant at $5 per unit, and its fixed costs are $20. Draw its total, average variable and average costs. Marginal Cost (MC): $5 per unit Fixed Cost (
Advertising can inform buyers, but sellers must incur costs to advertise. If so, advertising can result in higher prices to consumers. Does this mean advertising is economically inefficient?
Find the uniform price if there is two customers: Type A who will only pay 10.00 dollars for a single unit of the good, and Type B who will only pay 8.00 dollars for a single unit of goods. There is 1
Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range. The price on the demand curve is the producer's average revenue.
Could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit and fixed costs are $20.00
You bought the bond for $1,040, after 6 months you received a coupon of $35 and after another 6 months you received another $35 coupon and you sold the bond for $1,070. What would be your total doll
Why does a government place price ceilings, such as rent control, on some "essential" goods? C. am I right? A. to prevent the development of a black marketB. toencourage an increase in suppl
Engineers for the Off Road Skateboard Company have determined that a 10% increase in all inputs will cause output to increase by 5%. Assuming that input prices remain constant, you correctly deduce th
Some of the fields have large enough quantities of both oil and natural gas that coordination must achieved for the production of both rather than oil alone. Will fields with both oil and gas have gr
The central bank is rensponsible for the management of monetary policy. What is the major tool of monetary policy, and how would it operate in the context of a tight money policy?
Why is a high level of subsistence agriculture a characteristic of less developed countries? A. It shows that the country uses less energy. B. It means that more people are unemployed or und
The formula given was: (real rate of interest) = (nominal rate of interest) - (expected rate of inflation) A chartered bank offers a one-year loan at "3 points above prime." Prime is 4 per cent.&
Consider an infinitely repeated Cournot duopoly with discount factor delta <1, unit costs of c>0, and inverse demand functions p(Q)=a-bQ, with a>c and b>0. Find the condition on the
Explain how a firm's production function is related to its marginal product of labor? How a firm's marginal product of labor is related to the value of its marginal product? How a firm's value of ma