Discuss (using an appropriate diagram) the average cost pricing and marginal cost
pricing as two devices of regulating monopoly profits. Which method is efficient and
why?
What are the features of business cycles? Evaluate the validity of the following
statement “Real business cycle theory assumes that fluctuations in employment reflect
changes in the amount people want to work?”
How does the appreciation of the dollar affect real GDP? If you are advising a company
interested in buying a business in another country, how might exchange rate volatility
influence your decision?
Support a major technological innovation improves the economy-wide future
productivity of capital. What would be the expected effect on the stock prices?
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