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A monopolist faces a demand curve given by: P = 70 - 2Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $6. There are no fixed costs of production. How much output should the monopolist produce in order to maximize profit?
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $20 per hour per employee. Each employee identifies an average of 3,600 potential leads a week from a lis..
Define the equilibrium price and quantity.descibe the situation at a price of $10.00.what will occur.
Consider a simple economy described by: What would the new IS Curve look like? What would the new LM curve look like? What would the new equilibrium income Y and Interest I be?
What are the four reasons or justifications for government intervention in the economy? Describe two in details, providing an example of each.
Sketch a supply-demand diagram of the US Treasury bond market to illustrate the effects on it of the developments cited in part A. Label your diagram clearly.
Neither firm can choose which cell of the payoff matrix to obtain; the payoff for every firm depends upon the pricing strategies of both firms.
Assume you were just hired for an office position at a Fortune 500 firm. You have $500 to spend on your work clothes. You shopping choices are limited to Old Navy, the Gap or Banana Republic, how do you spend your money and why? The Oprah Curve,” wha..
Suppose that initially the money supply is $4.0trillion, the price level equals 4.00, the real GDP is $6.0 trillion in base-year dollars and income velocity of money is 6. Then suppose that the Fed cuts the money supply in half but the income velo..
Illustrate what is the difference between the firm's short-run supply curve and its long-run supply curve? Make up an actual example to explain your answer.
Elucidate the implication of the efficiency wage theory for unemployment. In what way are piece rates, commissions, royalties, profit sharing, and stock options substitutes for efficiency wages.
Suppose the economy is experiencing serious inflation. What are the appropriate fiscal and monetary policies to correct this problem? Draw the AS/AD and Ms/Md graphs and show and tell how fiscal policy works to correct the problem.
Free Trade has been growing! Does NAFTA [North America Free Trade Agreement] sound familiar? NAFTA was passed under the Clinton administration. Nine years later, U.S. Congress approved CAFTA [Central America Free Trade Agreement] which was signed int..
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