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A monopolist faces the following information:
The market demand: Q = 200 - 2P
The cost structure: TC = 300 + 20 Q
a. What is the profit-maximizing price-output combination and what are the levels of profits and consumer surplus at that point?
b. How would your answer to part a. change if the firm is forced into marginal cost pricing?
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
What is the difference between contractionary and expansionary monetary policy?
Essay on Market imperfection associated with negative externalities
An essay on Market imperfection associated with negative externalities.
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
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