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The inverse demand in a Cournot dupoly is P=a-b(Q1+Q2) and costs are c1(Q1)=c1Q1,and C2(Q2)=c2Q2. The government has imposed a per unit tax of $t on each unit sold by each firm. The tax revue is ?
a. t times the total output of the 2 firms should ther be no sale tax
b. less than t times the total output of the 2 firms should there be no sale tax
c. greater than t times the total output of the 2 firms should there be no sale tax
d. none of the above.
Explain the effect of the following events on the interest rate in the loanable funds market. Demonstrate you answer graphically. tax revenue is lower than expected and people expect cities to default on municipal bonds. They sell thier bonds and..
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 25%, 24%, 20%, 12%, 9%, 6%, and 4%. What is the Herfindahl index for the hamburger industry in this to..
Illustrate what an identification and discussion of economic issues of special concern at the present time or in the future.
Why the government now levies a tax on this good of 200$ per unit. Is this a good policy or why not. Can you propose a better policy
Let market demand be given by the inverse demand function P = 300-2Q, where Q = q1 +q2 +...+qn. The cost function for each firm in the industry is c(qi) = F +20qi+q 2 i . Firms are Cournot competitors. Find each firm’s equilibrium output and profit ..
The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure. Explain why M2 velocity should be more predictable ..
determine the macroeconomic effects of the following macroeconomic event when the economy is initially at less than
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
Provide an interpretation for the budget constraint. Explain what the slope of the budget constraint is. Explain what sign cant about the point of tangency is between highest in difference curve and the budget constraint. At this point of tangency, w..
A demand curve that is horizontal indicates that the commodity
Why doesn’t the Fed simply keep increasing the growth rate of the money supply at faster and faster rates to drive the unemployment rate lower and lower? Wouldn’t the gains in terms of faster output growth far exceed the losses from inflation?
Substitution and income effects of a change in price of a good may be used to explain the:
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