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Why may the amount of fertilizer Farmer Jones puts on the corn fields not affect the corn price or Jones' neighbour’s profits? But if Cadillac offers a new fuel "economic V-8" how come Lexus, BMW, Mercedes, Infinity, and Acura are affected?
Microeconomics, Economics
Question: An economy has a saving rate of s= .08, a depreciation rate of .02, a population growth rate of n= .03, and a growth rate of effective labor of g= .05. a. the capital-output ratio, k/y, for this economy is: b. ...
Question - Suppose a country's debt rises by 10% and its GDP rises by 12%. 1) What happens to the debt-GDP ratio? 2) Does the relative level of the initial values affect your answer?
Question: Consider an economy with the representative consumer, representative firm, and government. Suppose that G = 12. The consumer's preferences over the consumption good and leisure are given by the utility function ...
Question: Pre-existing Conditions: Insurance companies do not like to cover pre-existing conditions without being able to rate the premium because they know that these individuals represent higher risk and distort the av ...
Question: Draw demand and supply curve for labor. Identify the efficiency wage. Then show graphically how efficiency wage contributes to the structural unemployment The response must be typed, single spaced, must be in t ...
Question: What were the business cycles and long-term trend of the economy from the 1960s to now, and the main factors behind its growth? The response must be typed, single spaced, must be in times new roman font (size 1 ...
Question: Rent controls that are set below market equilibrium prices can help ensure that poorer people will be able to obtain living space on reasonable terms. Does this make sense? The response must be typed, single sp ...
Question: How does a franchise contract in which the parent company supplies ingredients to a franchise holder reallocate risk between the parties, as opposed to the situation faced by a non-franchise business and its sp ...
Question - Q1. Turnover Costs Savings - Assume that training results in a 10 percent reduction in your turnover rate. Also, assume that the cost of a turnover is 1.5 times the departing employee's salary. For a given ave ...
Question: "Social and institutional innovations are as important for economic growth as technological and scientific inventions and innovations." What is meant by this statement? Explain your answer. The response must be ...
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