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The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist. Tasks: 1. Using the data above, calculate the output the firm will provide. 2.Determine the price at this output level. 3.Complete the Microsoft Excel Template given below using the data in the problem. 4 .Check whether your data is consistent with your calculations in question 1. Why or why not? 5.Now assume that the state decides to give as many contracts as it can for the same activity, so your firm is now operating in a perfectly competitive market. How will your price and output decisions change? Explain the differences and why these changes happened.
If you were in a discussion about The Federal Reserve System about the tools they use to pursue montery policy and what tool they use the most how would you comment or reply to the follow the statement is it right, wrong the correct use by FED and so..
The public cash withdrawals from banks decrease the central bank liabilities and shrink the size of the banking system balance sheet. Do you agree or not? Explain your answer. Use the Fed and the banking balance sheet to support your answer.
The topic is one currently being debated here in the united states. it involves a proposal by the president Obama to raise the federal minimum wage from $7.25 to $10.10 per hour. How many workers will lose their Jobs due to this increase?
In the U.S., the command-and-control environmental laws of the early 1970s, together with the ensuing amendments and updates that have been made to them over time,
determine the amount at time 0(now) equivalent to the cost of owning and operating the machine for the next five year period. It is anticipated that the machine can be sold for $1000 at the end of the five year period. Use an interest rate of 10%.
Do some outside research on recent actions on the part of the Federal Reserve. The Fed is essentially responsible for monetary policy. Describe the functions of the Fed and why manipulation of the money supply has been such a prominent tactic over th..
An economist gives the following advice to a museum director: “You should introduce “peak pricing”. At times when the museum has few visitors, you should admit visitors for free. And at times when the museum has many visitors, you should charge a hig..
Real wealth which capitalists pull out of market must somewhere enter market. What is this hidden mechanism.
Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.
In an open economy, why is the demand curve in the foreign-currency exchange market downward sloping?
Forward premiums and discounts imply that there is risk in foreign exchange transactions. Explain the three types of FX risk? How can foreign exchange rate risk be fully covered or hedged?
firms marginal cost curve crosses marginal revenue curve at an output level of 1,000 unit. What is firms current profit. What is likely to occur in this market and why.
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