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The following demand and marginal cost equations represent the demand for some service inside the firm. At what price should the service be sold? Would it matter whether there was an external market for this service? The demand function P = 30−2Q. The marginal cost function: MC = 20.
Calculate dollar rates of return on a deposit 10,000 pounds in a London bank in a year when interest rate on pounds is 10 percent and dollar/pound exchange rate moves from 1.50 dollars per pound to 1.38 dollars per pound.
Suppose that a profit maximizing monopolist's marginal costs increase at all output levels. What is likely to happen to the quantity the monopolist produces, AND the price it charges?
A 5 percent increase in the price of digital apps reduces the amount of tablet devices demanded by 3 percent. What is the cross price elasticity of demand? Are tablet devices and digital apps complements or substitutes?
2. consider toms labor supply decision. tom can earn 15 per hour but he faces a 20 tax rate and pays 4 per hour in
Derive the LM curve when the money supply increases by 500. Derive the LM curve when money supply decreases by 10%. Find the value of money demanded when income Y = 15,000 and interest rate R = 5. Is this equilibrium? Why? Why not?
When the addition of one more unit of input results in a smaller increase in output then the previous unit, what type of return is occurring?
As real interest rate rises, the quantity of loanable funds supplied _____ and the quantity of loanable funds demanded _____
Describe each country's reaction function. Does a Cournot equilibrium exist? If so, find the outputs and prices of crude oil in the two countries.
For the next three questions we will consider Sante Bank, which has the following (partial) list of accounts on its balance sheet:
Considering the following concepts such as GDP, unemployment, monetary and fiscal policy. Pick an recent newspaper article (New York Times, Wall Street Journal, etc.) that focuses on DELL INC. Describe the event and the issue for DELL INC. (summarize..
Suppose you have a budget of $52 to spend of pretzels and beer. Your utility function is U = 15p + 18b – 0.5p2 – 0.5b2. The price of a small bag of pretzels is $2, and the price of a pint of beer is $4. Does the utility function indicate a relationsh..
Listed below are the weekly sales from the household department at a local discount store: $35,000, $46,000, $28,000, $35,000, $68,000, and $52,000. Find the Arithmetic Mean, Median, and Mode.
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