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A monopolist has demand curve given by P = 100 –Q. The total cost is given by TC = 16 + Q2. Find the monopolist’s profit maximizing quantity and price. How much economic profit does the monopolist make? If this was a perfectly competitive firm, what would the level of output be? Calculate the efficiency loss of the monopoly.
According Keynesian’s theory (the government could switch role and become consumers during a recession) Discuses these theory with some example. !? What is the condition of macroeconomics equilibrium and find MPC when Y=1 and MPS=0.25. ?
Demand for phones at an on-line retailer is 5,000 per month. The annual inventory carrying rate for the retailer is 25 percent, and the retailer incurs a fixed order cost of $15,000 for each order placed with the supplier in Taiwan. How many phones s..
What impact would you expect this increase in the gap in living standards between the richest and poorest to have on income elasticity today? Briefly discuss.
She says the tax will generate $100,000 tax revenues per month. What assumption is she making.
Suppose that GDP is equal to 1000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal...?
Assume that the following data describe the condition of a banking system. Total reserves $200 billion, Transaction deposits $800 billion, Cash held by public is $400 billion, Reserve requirement .20.
In his discussion of post-WWII growth in France, Blanchard describes the effects of destruction of part of a nation's capital stock. Suppose that instead of a decline in the capital stock a country experiences a decline in N resulting from a plague t..
Consider a Cobb-Douglas utility function of the type u(x,y) =x2y2. The prices of the two goods x,y are px = $2 and py=$4 consumers income is given by m=$100. find the optimal basket containing these two goods. find the demand functions for x. Must be..
The economy is starting from equilibrium. The following shocks then hit the economy in order: interest rates rise, business taxes increase, and there is an expectation among consumers that there will be a severe increase in inflation over the coming ..
Name the top three largest trading partners with the United States. Which countries (if any) do we have a trading deficit? Or any of them (roughly) trade balanced?
Create an 3-6 page report, that includes an explanation and/or examples of: A circular flow diagram that includes the government sector. For this part of your paper, you should include a description of the roles that each participant plays in
Define benefit and cost externalities. Explain why situation involving benefit externalities tend to result in an under allocation of society’s scarce resources.
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