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Dr Leona Williams a well know Plastic Surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to be
Q= 480 - 0.2P
where Q is the number of nose operations performed monthly and P is the price of a nose operation.
The average variable cost function for reconstructive surgery is estimated to be:
AVC = 2Q - 15Q + 400
Where AVC is average variable cost (measured in dollars), and Q is the number of operations per month. The Doctor's fixed costs each month are $8,000.
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
An essay on Market imperfection associated with negative externalities.
Vulnerability Analysis
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.
Problem on standard deviation
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
Explain International Monetary System
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
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