Ordinary demand and compensated demand functions
What is the theoretical differences between ordinary demand functions and compensated demand functions?
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Calculate output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level. Calculate these values at the profit-maximizing activity level.
A bond maturing in 7 years pays 8% on a $1,000 face value. However interest is paid semi-annually. If your required rate of return is 10%, what is the value of the bond? What is the value if the interest rate were paid annually?
Explain whether each of the following events will increase, decrease, or have no effect on long-run aggregate supply. 1. The United States experiences a wave of immigration.
An outside supplier has offered to sell Hanson, Inc. all of the prositrons it requires. If Hanson, Inc. decided to discontinue making the prositrons, 10% of the above fixed manufacturing overhead costs could be avoided.
Assume that each of them has only two $1 bills on hand, leaving three possiblebids, $0, $1 or $2. Write out the payoff matrix for this game , and then find its Nash equilibrium.
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What is meant by the term "natural monopoly" and what are the key characteristics? Provide your own example of a natural monopoly and discuss whether or not it is fair for a natural monopoly to exist.
Assume that System X is judged to have high risk. The clinic accounts for differential risk by adjusting its corporate cost of capital up or down by 2 percentage points. Which system should be chosen?
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