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A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate between two groups of customers, with demands Q1 = 3,000 - 2p, and Q2 = 350 - 0.5p respectively. How much does it sell to each group, and at what price? What would happen if it were forced to charge all its customers the same price?
Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?
What price should DD set to maximize profits? What would output be if DD acted like a perfect competitor and set P = MC?
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are:
The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
Prepare a demand schedule for both demand curves and prepare them on an Excel graph. Calculate the marginal revenue for each.
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
What is opportunity cost of producing a car in Canada? What is the opportunity cost of producing the tonne of wheat in Canada? Describe the relationship between the opportunity costs of two goods.
An essay on Market imperfection associated with negative externalities.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
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