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A perfectly competitive market is described by the demand Q = 60 - 2P and the supply curve Q = 5P - 10.
A firm in the market has a total cost equation of C = 16 + Q2 + 2Q
a. Calculate the equilibrium price in the market.
b. Calculate the profit-maximizing output for the firm.
c. Compute the firm's total profit.
d. Can this outcome persist in the long-run? Explain.
Suppose that velocity is constant at 9, but the nominal money supply increases from $1.5 to $1.8 trillion. What must happen to nominal output? Suppose further that real output is constant at 13.5 trillion “units”: what must happen to the price level?
The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted.
A typical customer who buys from a firm has a demand given by P = 90 - 3 Q. The firm has a constant marginal cost MC = $18 and no fixed cost. It currently uses a uniform pricing strategy (i.e., it charges a single price for all the units it sells), b..
What are they? What is the key difference between an economy of scale and an economy of scope? Sirius XM acquires Pandora;
A city engineer must choose between two different routes for a new sewer line. Route 1 is a 20,000-foot gravity line.
Find the equilibrium quantity and price. Calculate consumer surplus, producer surplus, and total surplus in this market.
Which in turn depends on the animal's access to grazing which depends on the number of llamas sent to the commons.
Illustrate what are equations for IS and LM curves. Illustrate What is equilibrium level of income and interest rate.
Using aggregate demand aggregate supply analysis, explain the impact of the increased price level on the United States economy.
Suppose the price level and the value of the dollar in Year 1 are 1.0 and $1.00, respectively. If the price level rises to 1.50 in year 2, what is the new value of the dollar? Assume that John Nash has $10,000 in his checking account and uses his che..
Should you ask your boss if you can use the money to buy two tickets? Why? in flying or lying in business class
The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.
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