Q1 firms with costs c q2 36 face demand p 24

Q1 firms with costs c q2 36 face demand p 24 - nq and

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Q1. Firms with costs C = q^2 + 36 face demand P = 24 - nq and behave under the rules of Monopolistic Competition. Compute and illustrate the prices and quantities that occur in the short run, with one monopolist, and in the long run, where entry has occurred. Illustrate, calculate and explain how the efficiency loss is affected by this entry.

Q2. Suppose that CA-Gyros Technology hired an engineer from Hong Kong in the year 2007, and paid her $100,000 salary in 2007. Give a detailed explanation about how the engineer's income generation as described above affects GDP and GNP of U.S.

Reference no: EM13353061

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