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Suppose there are n identical firms in a market. Each firm’s cost function is given by C = 25 + q2, where q is the amount that an individual firm produces. This means that an individual firm’s marginal cost is given by MC = 2q. Also, the market demand is given by P = 100 – 2Q, where Q is the total amount of the good produced by all of the firms combined. Therefore, Q = n*q. a) How much output will each of them produce? b) What will be the market price? c) How many firms will there be in long run equilibrium?
Gliberace's Fashion Accessories of Las Vegas produces gem-stone encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 5(QLA + QSF). Demand for Gliberace's stones in the two cities is given by QLA = 70 - 2PLA..
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
Which of the following would cause the supply curve for bread to shift inward?
The principal benefit of tariff protection goes to: A ad valorem tariff provides domestic producers a declining degree of protection against import-competing goods during periods of changing prices. When the production of a commodity does not utilize..
The respective forecasts were 120 for all four years. Illustrate what is the resulting MAD value that can be computed from this data.
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..
Economists frequently point out that factor movements between two countries can be a substitute for goods movements between the countries in terms of the impact on relative factor prices in the countries. Explain why the two types of movements can be..
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Explain the key features and innovations of Progesa/ Oportunidades Program regarding human capital? Even though the program has been successful in Mexico, Explain why a similar program might not work elsewhere.
After 1, 2, and 3 years, it will pay a dividend of $5.You expect to sell the stock after 3 years for $120. Is XYZ a good investment. Support your answer with Calculations.
Second, it will not reduce bene ts for the rst $3,000 earned by the workers. After this, it will reduce bene ts at a reduction rate of 50%. Draw the budget constraint facing any worker under the proposed new program.
According to whose model does expected inflation tend to move with the return on money?
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