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A monopoly has a constant marginal cost of production of $1 per unit and a fixed cost of $10. Draw the firm's MC, AVC, and AC curves. Add a downward sloping demand curve, and show the profit maximizing quantity and price. Indiate the profit as an area on your diagram. Show the deadweight loss.
Using the concept of net present value also opportunity cost, explain when it is rational for an individual to pursue
Illustrate what is the net current value of a project that requires a $100 investment today and returns $50 at the end of the first year and $80 at the end of the second year? Assume a discount rate of 10%.
What are the short-run equilibrium values of the price level, expected price level, output, and unemployment rate. Illustrate what are the values of cyclical unemployment and unanticipated inflation.
What does it mean to have an imperfectly competitive market. Clarify with examples.
Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
Discuss a scenario where either the supply or price of a good or service is intentionally limited by the government.
Sketch the payoff matrix for this game. Identify any possible Nash equilibria in pure strategies for this game."
Equilibrium in the market occurs at a price of $2,500 and a quantity of 10,000. Draw the demand curve that must exist if consumers bear the entire burden of a $500-per-TV tax imposed on this market
Find out the Nash equilibrium prices of the procedures at the hospitals. Do the merger result in price increases.
explain why the actual increase in M-1 will be smaller than that indicated by the over smplified multiplier.
Justify your answer using at least two analytical techniques and presenting the information graphically.
Considering the market for loanable funds, how does the severity of crowding out depend on the slope of the supply curve?
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