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Problem: Given a perfectly competitive firm in its long run position find the price, level of output and overall profits of the company if it is known that its long run total costs are given by the following equation:
TC=500qi-20qi2+2qi3.
Output and Price:
Profits:
Find the number of firms and their output if the industry demand is given by: P=1800-2Q
The Economist argues that Sydney house prices are significantly overvalued because the rentprice ratio is below its mean value (for period 1980-2016).
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Suppose Congress and the president decide that the best method to stimulate the economy is to cut taxes. The total amount of tax cuts approved is $300 billion and the current MPC is .80. Determine the initial fiscal stimulus and the cumulative fiscal..
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