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    3.If you were an economist for Mattel, manufacturer of the doll Barbie, which was making an unsolicited bid to take over Hasbro, manufacturer of G.I. Joe, would you argue that the relevant market is dolls, preschool toys, or all toys including video games? Why? Would your answer change if you were working for Hasbro?

    National Output Domestic Spending

    If national output Y=1000 and domestic spending on all domestic and foreign goods and services equals 900, net exports (NX) will be _________________. Explain. Thanks for your help!

    Price Ceilings and the marginal rate of substitution

    1. What entity establishes a price ceiling and does it require government sanction for violators? Will it result in a surplus or a shortage? 2.Does the marginal rate of substitution increase or decrease as a point moves downward and to the right along a given indifference curve?

    Calculating the Rate of Growth of Per Capita Real GDP

    The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the countries' population was stable from year to year. Recently, however, a significant increase in the nation's birth rate has raised the annual rate of population growth to 0.5 percent. Answer the following questions: What was the ra

    How Interest Rates Affect Long and Short Term Bond Prices

    "The values of outstanding bonds change whenever the going rate of interest changes. In general, short-term interest rages are more volatile than long-term interest rates. Therefore, short-term bond prices are more sensitive to interest rate changes than are long-term bond prices" Is this statement true or false? Please explain

    Underinvestment in Education

    "Why is it likely that in a system of private education (i.e., a system in which individuals pay for their own education) there will be underinvestment in education? *Remember, education, likes yard work, provides additional social benefit to the society."

    Total Profit Maximization - Dairy Farm Company

    I'm having problems figuring out how to graph the attached problem. I know it must include product transformation curves, with total cost points, as well as total revenue lines. I'm just very confused about how to even get started. I need some guidance.

    quantity theory of money

    Suppose that the quantity of money in circulation is fixed but the income of velocity of money doubles. If the real GDP remains at its long run potential level, what happens to the equilibrium price level? Stays the same doubles triples quadruple

    Finding the Multiplier

    Given an increase in spending of $1,000, and a Marginal Propensity to Consume (MPC) of 80% (8/10), what would be the total increase in the GDP (as a result of the Multiplier?) What would the Multiplier be? Please show all work to help me clearly understand this problem.

    Total Sunk Cost and the Total Opportunity Cost

    Dave is employed by a company that currently pays him $65,000 per year. He owns a new car that he bought for cash of $32,500. Dave is thinking about returning to school to obtain a law degree. Tuition for the school he wants to attend is $28,000 per year, books average $1,350 per year, and room and board average $12,550 per year

    Demand Curve Described Equations

    The demand for a shake at a Juice Shop can be described by the equation: Q= 1000- 240P + 80N, where Q denotes the number of shakes sold per day, P is the shakes price and N is the price of a shake at a nearby cafe. a. How many shakes will be sold if P=$1.50 and N= $1.20? b. Write down the equation for the firm's demand curve f

    Calculate the Real GDP in Each Year

    Calculate the real GDP in each year, assuming that the nominal GDP was $559 billion in the base year, $577 billion in year one, and $605 billion in year two; and that the price index rose from 100 to 104.5 in the first year, and up to 108.3 in the second year. If the price index 20 years before the base year was 41.2, and the no


    Among the advantages of the _____________ technique of forecasting are ease of calculation, relatively little requirement for analytical skills, and the ability to provide the analyst with information regarding the statistical significance of results and the size of statistical errors. least-squares trend analysis

    Reinvestment under IRR

    When two mutually exclusive projects are considered, the NPV calculations and the IRR calculations may, under certain circumstances, give conflicting recommendations as to which project to accept. The reason for this result is that in the NPV calculation, cash inflows are assumed to be reinvested at the cost of capital, while i

    Probability types

    Probabilities, which are based on past data or experience, are called a. a priori. b. objective. c. uncertain. d. statistical.

    The internal rate of return of a project can be found

    The internal rate of return of a project can be found a. by discounting all cash flows at the cost of capital. b. by averaging all cash inflows, and calculating the interest rate, which will make them equal to the average investment. c. by calculating the interest rate, which will equate the present value of

    Tying Arrangement Substitutions

    A tying arrangement exists when a. a company sells two products that are substitutes for one another. b. a company requires that a customer tie itself down by signing a long-term purchasing agreement. c. a buyer is required to buy both a specific product and its complementary product from the same supplier. d. a company

    Monopolistically Competitive Firm

    In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to a. continue its efforts to differentiate its product. b. raise its price. c. lower its price. d. do nothing, because it will inevitably experience a decline in profits.

    Adverse Selection versus Moral Hazard Incentive Problem

    WHich of the following is an example of an adverse selection problem and which is a moral hazard incentive problem? In each case, give one method that the restaurant might use to reduce the problem 1) A restaurant decided to offer an all-you-can-eat buffet that is sold for a fixed price. The restaurant discovers that the cust

    perfectly competitive firm's short run cost

    Assume a perfectly competitive firm's short run cost is TC = 100 + 160Q + 3Q2. If the market price is $196, what should it do? a. produce 5 units and continue operating b. produce 6 units and continue operating c. produce zero units (i.e., shut down) d. cannot be determined from the above information