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Problem: Consider a monopolist who has a constant marginal cost of MC = 20.
(a) Find the profit-maximizing quantity and price if the inverse demand curve is P = 620 - 25Q.
(b) Find the profit-maximizing quantity and price if the inverse demand curve is P = 520 - 2Q.
(c) Do your answers from a and b imply that the supply curve is downward sloping? If so, how is this possible? Is not, why not?
(d) Calculate the Lerner Index and Elasticity of Demand for both a and b.
Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shift of demand prices have fallen
She can earn an annual interest rate of 4% or a nominal interest rate of 3.95% compounded continuously. Which is the best option and at the best interest rate, what will the account balance be after 25 years?
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q.an individual has a comparative advantage in the production of a particular good if she can produce it at a lower
Are there any particular imported commodities that you or your firm rely on. Illustrate what has happened to the supply of these imports over the years.
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Two persons, Abigail and Noah, each allocate their time between market work and housework. Abigail earns $12 per hour in the labor market, and can produce $18 worth of goods and services per hour at home. Draw their separate production possibilities ..
What are the factors that would influence the Federal Reserve in adjusting the discount rate? How does the discount rate affect the decisions of banks in setting their specific interest rates? How does monetary policy aim to avoid inflation?
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