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Supose that in a perfectly competitive market, the demand curve is given by P=100-Q, the supply curve is given by P=20+Q.
1) In a single graph, represent the demand curve as well as the supply and social supply curves. Solve for both the equilibrium and the efficient equilibrium.
2) Which type of externality does this represent? Give real life situations.
3) What could the government do to correct this externality?
q.1. you are a monopolist. suppose there are two types of people who buy your product groups 1 and 2. their separate
Explain why some people support unions whereas others oppose them. What advice would you give to an employer who wants to adopt some form of employee participation program but is concerned about the legality of such program?
Consider a market for pawn brokers. The television show Pawn Stars creates a lot of positive buzz for the profession. What will happen to the market? Demand increases, demand decreases, supply decreases, no change in either, or supply increases?
Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..
Briefly point out the faulty reasoning in each of the following situations: You win a free, nontransferable ticket to a Sheryl Crow concert. Since the ticket is free and it will therefore cost you nothing to go, you decide to go to the concert.
llustrate what are the quantities produced before and after the tax was imposed.
uppose a firm is operating under a competitive market conditions and going price for its product is $260. Illustrate what is firm's profit maximizing output. Explain how much profit will firm make.
What is a "Natural Monopoly"? What industry or firm do you regard as a "Natural Monopoly"? Explain the governmental action(s), if any, that you believe may be appropriate in this case.
Suppose that we have a standard real intertemporal model with investment with two twists. First, the effect of the real interest rate r on current consumption C is assumed to be zero. Graphically derive the aggregate output demand curve Yd under thes..
q1. what is the capitalized cost of expenditures of 3000000 now 50000 in months 1 through 12 100000 in months 13
This year before a major earthquake adversely affected the production capacity in Nepal, the country's economy was working at its capacity level and inflation and growth rates were following their normal and stable paths at 2% and 4%, respectively. W..
Use the following information from the current year financial statements of a company to calculate the ratios below- Accounts receivable turnover. Times interest earned ratio. Divided yield ratio. Earnings per share.
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