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Suppose a monopolist's per-period demand curve for a new drug is given by p = 100 - q, and its marginal cost (mc) curve is given by an upward sloping (not flat) line mc = 2q. What is the socially optimal quantity of output, q*?
How do the topics in Inequality for All affect students? Which topic in particular seems the most urgent/important to your audience, and what do you want to persuade them to think about it?
Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average income of consumers. Also, assume the supply of basketballs is given by QS = 2P. If the market for basketballs is perfectly c..
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
Recessions often are related to the fact that consumers consume less of many of the goods they typically consume. During a recession unemployment typically increases. Relate this behavior to the budget line and indifference curves that we studied.
Based on your graphical analysis, explain the predicted impact of Mr. Buchanan's proposed policies. Specifically state what happens to the exchange rate, the trade balance, the volume of imports, and the volume of exports.
Which of the following action(s) the Central banks can use to control movements in exchange rates
Amend the diagram and use similar algebra to figure out Illustrate what happens again.
A firm plan to borrow $900 via issuing debt instruments. The firm can issue a simple loan, a fixed-payment loan or a coupon bond. If the interest rate is fixed at 8%, the face value of the coupon bond is $1000 and the fixed-payment loan has 5 payment..
Social Welfare: A social planner has decided to allocate income between two people so as to maximize the sum of utilities of persons 1 and 2 (W = U1 + U2). Determine the marginal rate of transformation of person 1’s income into person’s 2’s income, i..
Suppose there are two types of Scottish beer, Skullsplitter and Dragonhead Scout. Draw indifference curve for the following consumer (put Skullsplitter on the x-axis and Dragonhead Stout on the y-axis. Angus likes variety and prefers to drink Skullsp..
Why is it often difficult to develop a realistic analysis?
Tragedy of the Common. What does Hardin mean by “It is one of the peculiarities of the warfare between reform and the status quo that it is thoughtlessly governed by a double standard.”? What is the “double standard” and what implication does this ha..
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