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An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is q(p) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for this industry?
Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves. What happens to the equilibrium price for the pollution rights?
Consider a monopolist with demand curve P= 100-Q/2 . The total cost of production is 10Q + 1500 for positive ouput and 500 if it shuts down production. Illustrate what is the maximum profit the monopolist can earn (assuming no possibility of price..
The U.S. Securities and Exchange Commission (SEC) roadmap issued in 2008 may eventually move U.S. issuers to report under International Financial Reporting Standards (IFRS). Consider the following critical questions of such a move:
The following equations apply to an economy: C=400+.9(Y-T) I=250-50r (M/P)d=Y-300r You also know that government spending and taxes are 500 and the nominal money supply is 4000. The price level is 2. Make sure you simplify your equations. What are th..
A statistics practitioner drew a random sample of 400 observations and found that x bar = 700 and s = 100. Illustrate what is total amount of output firm should produce.
You have purchased a machine costing $30000. The machine will be used for 2 years, and at the end of this time, its salvage value is expected to be $18000. The machine will be used for 6,000 hours during the first year and 8000 during the second year..
Decide whether each scenario would lead to upward or downward pressure on the equilibrium price for each good in bold font.
find the marginal rate of substitution, find the interior solution to the consumer's. Utility maximization problem, find the corner solution to the consumer's utility maximization problem,
Explain the effects of a tariff and a quota placed on imported automobiles on a domestic market. Who is hurt with a tariff or a quota and why? Who benefits and why?
Over the last months, a growing score of economists have suggested that the Federal Reserve should raise interest rates (by reducing the money supply). Do you think that recent figures on employment and GDP growth lend support to such claims?
q1. if the annual real interest rate on the loans is 6 explain how many car companies will buy a new car assembly
What is currency crisis (or financial crisis)? What are the major stages of a financial bubble? Use one example (Mexican peso crisis, Asian financial crises, .Argentine financial crisis, or 2008 financial crisis) to illustrate these stages.
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