Necessity of government intervention

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Reference no: EM1313985

Q1. Suppose P=20-2Q is the market demand for a local monopoly. The marginal cost is 2Q. The firm currently uses a standard pricing strategy. Illustrate what is the profit to enhance the firm?

Q2. Theoretically, which of the subsequent will have the effect of shifting the Aggregate demand curve to the right to eliminate a recessionary gap?

Q3. Under Illustrate what conditions are likely to be internalized without the necessity of government intervention?

Reference no: EM1313985

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