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Monopolist usually makes economic profit in the long run. Explain why Eskom is not a profitable company recently. Motivate your answer by referring to the BHP Billiton's contract with Eskom.
Suppose that you can sell as much of a product as you like at $92 per unit. You marginal cost (MC) for producing the Qth unit is given by: MC=10Q. If fixed costs are $350, what is the optimal output level? Suppose a firm has as its total cost functio..
q1. in the short run the interest rate parity model is considered to be important in determining the expectations about
A bicycle race, the Tour de Florida, which will have riders from various countries. Each rider will also be on a team. The teams will have a name
Over 4000 individuals called up Dr. Kalikorn and asked him to perform a new surgical procedure. Dr. Kalikorn booked 2000 of these and told the rest to seek care from another physician. What is his quantity supplied? Explain.
A firm uses capital and labor to produce output according to the production function q =4 rad(KL) , for which MP L= 2 rad(K/L) and MP K= 2 rad(L/K). If the wage w=$1/labor-hr. and the rental rate of capital r=$4/machine-hr., what is the least expensi..
If the current market rate is 8% interest compounded semiannually, what is the bond's price?
Some estimates are that immigration has increased the US labor force by 10%. Assume that the labor supply native and immigrant workers are both completely inelastic. By what percent will the wage rate of native workers fall? By what percent of GDP wi..
An automobile factory sold $10,000,000 in automobiles to final consumers. Given these events, calculate the GDP of Autoland using a. the final goods approach. b. the value-added approach.
Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again?
Graph the Bens consumption function also find their households marginal propensity to consume.
Describe the Discretionary and Non-discretionary Fiscal Policy you would advise
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/10,000, making the marginal revenue MR=1.70-Q/5,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. Variable cost is 0.80Q..
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