Productivity-cost and firm demand for production factor
Problem: What is meant by productivity, cost, and firm demand for one production factor. Can you please explain?
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a. Draw the supply and demand curves for pounds, and determine the equilibrium exchange rate (dollars per pound). b. Suppose that the supply of pounds doubles. Draw the new supply curve.
Suppose there is a general expectation that the central bank will revalue the domestic currency in the future (i.e. it will reduce the fixed exchange rate defined as the amount of the domestic currency per unit of foreign currency). Explain the sh
You suddenly realize that your demand estimates might have some uncertainty in them. How might you change the amount of surplus you give to the consumers because of this?
Indicate whether the effect of each of the following is an upward or downward movement along a given demand curve or instead involves an outward or inward shift in the relevant demand curve for new motor homes. Why?
What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time? If the Fed changes the money supply to match the change in money demand, what will happen to the interest rate
1. Graph the supply and demand curves 2. What are the equilibrium quantity and equilibrium price? 3. How much consumer surplus exists in this market?
Why do we have such extreme diversity in pay in the US---sport stars, actors, others making very high salaries while others make much less? What does economic theory tell us on this topic?
Define the economic characteristics of the market structures (Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly).
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