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Unformatted text preview: perfectly competitive firm. a. Assu ming that the price of the firm’s output sells for $2, fill in the missing data in the table above. b. If the market rate is $40, how many workers will the firm hire? 4. Risk Which of the following gambles would a risk averter take? 0.1% chance to win $1,000,000 99.9% chance to lose $1 0.01% chance to win $1,000,000 99.99% chance to lose $1 10% chance to win $100 20% chance to win $10 40% chance to break even 30% chance to lose $20 5. Money and the Interest Rate Labor Input Output Marginal Product Value of Marginal Product 1 50 2 90 3 120 4 140 5 150 6 150 Suppose that: C = 600 + 0.75(YT)  400r I = 300  500r G = 100 = T  100 NX = 50 a. Find GDP (Y) in terms of r. b. If the Fed drops interest rates by 3%, what happens to GDP?...
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 Spring '08
 Belasen
 Economics, Monopoly, Value added, Market Value GDP, price discriminator, Professor Belasen Practice

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