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Q1. Bob's Lawn-mowing Service is a competitive firm. At the current level of production, the firm mows 10 lawns a day. Following is its revenue and cost schedule. Calculate firm's total profit.
Q2. The pharmaceutical industry is an oligopoly. Given that, firms producing prescription drugs under a brand name, can charge higher prices in their quest for profit. What do you think would happen to the public who relies on high tech new drugs, if the US government required all pharmaceutical firms to sell their drugs in a competitive market with no ability to patent their break through?
Calculate the firm's optimal output and profits if prices rise to $65 per unit and also calculate equilibrium output, price and profit levels if the firm is typical in its industry.
Explain how this new inflationary environment would affect the demand for money according to portfolio theories of money demand.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
Austria has a history of strong hostility to nuclear power, and over the last twenty years the Austrians have shut down all of the reactors in Austria
The licorice industry is competitive. Each firm produes 2 million strings of licorice every year. Total cost of strings have an average.
Show graphically the effect on the supply and demand for Bonds in a deflationary period.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
The difference between the cost to produce the CDs and the price you paid for them spending $30 on two new CDs spending $30 on dinner and a movie with your friends.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
If the Federal Reserve adopts a restrictive monetary policy that leads to relatively high interest ratesin United States, what happens to the demand and supply of foreign currency and the dollar's exchange value.
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
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