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A competitive firm’s cost of production is C(Q) = 16Q - Q2 + 4Q3.
For parts (p) and (q), suppose that the market demand falls to Q* = 256 -16P.
(p) Draw this market demand curve on a diagram that includes the market supply function.
(q) Calculate the market equilibrium How much output does each individual firm produce in the market equilibrium? (This is slightly tricky.) Calculate the individual firms’ profits.
For a competitive firm facing a market price above average total cost, the existence of economic profits means that the firm should increase output in the short run even if price is below marginal cost.
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U.S. policy to increase the miles per gallon (mpg) of new cars is to mandate an average mpg for cars sold by U.S. manufacturers. In many countries within the European Union, the policy is to tax gasoline so that the price per gallon at the pump is st..
Which of the following fed actions will increase bank lending?
Republicans asserted that many of president obama's fiscal stimulus spending was " wasteful and ineffective." Does the content of fiscal stimulus spending matter?
Suppose the Federal Reserve Bank adopts expansionary monetary policy. Using the graph of supply and demand for the market of short term Treasury securities, show graphically and breifly explain what happens to the price of short term treasury securit..
After that illustrate what is that firm as marginal revenue as it increases output from 1700 units to 2300 units
Draw the payoff matrix for this game. Elucidate any possible Nash equilibria in pure strategies for this game.
Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works
Analyze how inflation could occur in a society that relies exclusively on barter versus money. Speculate what form inflation would take and how you would recognize it. Provide support for your response.
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