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A monopolist faces demand p = 20 - Q + 0.5A 0.5. Cost is C = 4Q + A, where A is the quantity of advertisement, measured in $1 units. What are the profitmaximizing output and advertising levels? What are the profits?
Suppose that a firm's production function is given by U=K.33 * L.67, where marginal product of capital is QK = .67(K-0.67 * L.67) and MPL is QL = .67(K.33 * L-.33).
What is the value price elasticity, expressed as a positive number (round answer to 2 decimal places).
A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. Briefly explain the short-run adjustments for the market and the firm to a decrease in consumer incomes. What happens..
While many domestic institutions play an important role in the globalization process, describe three fundamental policy measures that those countries need to promote in order to benefit from globalization. How would these policies be implemented? How..
Which of the following are benefits created by the immigrants?
You have been hired by a consulting firm that advises a country on monetary and fiscal policy matters. Your assignment is to develop monetary policy options for the country. The country explicitly states that its long-run inflation target is 2%.
Explain the differences in how an open and closed economy is modeled including any policy (monetary and fiscal) implications for these two types of economies. Ins include a fully labeled model showing the impact of increased political instability for..
a. Find the probability that the company will meet its goal on a particular 100 miles of line. b. Find the probability that the company will not meet its goal.
Explain the practical effect of price controls on product and service availability, quality and true cost. What is the full impact of rent controls? On whose behalf are they imposed? Who are the winners and who are the losers? What is the impact of p..
Using the same production function as in question 4 {ie: q = (K^1/2 + L^1/2)^2} suppose that the firm is now operating in the long-run. Solve for the long-run cost function (i.e. total costs as a function of input prices and output).
One of the economic principles says: "Prices rise when a government prints too much money". Explain and justify in details how this principle works. Suppose in a bank the amount of reserves $80 and the reserve ratio R= 20%. Find the increase in the ..
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
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