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A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product:
Q=200-2P , MR=100-Q , TC=5Q , MC=5
Suppose that a tax of $5 for each unit produces is imposed by state government. What is the profit maximizing level of output?
a. 0
b. 90
c. 95
d. 100
e. None of the above
Suppose households hold $0.30 in currency for every $1 they have as demand deposits (checking accounts). Also, banks hold 20% of their deposits as reserves. Instead of Bonds being sold, suppose that households chose to hold less in currency and more ..
Illustrate what is the marginal cost of the 1,000th packet. Is this firm making an economic profit, a normal profit, or an economic loss
If this economy were an open economy with a flexible exchange rate, would the usual crowding out forces be supplemented or offset by forces from the international sector
What is the European Union (EU)? Why was it formed? What nations belong to the EU? In addition, what are some of the objectives of the nations.
Here are some hypothetical numbers used to illustrate the ideas of trade-offs, specialization, and comparative advantage. Assume Sri Lanka, using all her resources efficiently, can produce either 1,000 bags of rice OR 3,000 bags of tea. Let's also as..
Using a three-circle Venn Diagram, check the following categorical arguments for validity. Some advertisers try to create a new ideal state for consumers. Some advertisers try to create dissatisfaction with the consumer’s current state. So, some who ..
What can you say about the level of the real interest rate if people instead are risk averse.
Explain what are the repercussions for Government/legal/military that impact International Logistics. Some variables of interest might include changes in laws, military operations, arms reduction or buildup, government regulations or deregulation, gr..
What are the phases of business cycle? What happens during prosperity? What happens during contraction phase? What is the difference between recession and depression?
Georgia Mills Company (GMC) purchased a milling machine, which it intends to use for the next five years, for $180,000. This machine is expected to save GMC $35,000 during the first operating year. Assuming that GMC would operate the machine for an a..
Last fiscal year 01-Jan to 31-Dec, Norco, Inc., had a gross revenue of $20,000,000, cost of goods sold and interest expenses of $5,000,000, and total depreciation charges of $5,000,000. Also on October 1 of last year, Norco completed purchase of and ..
Explain what are the repercussions Physical environment. Some variables of interest might include climate change, shipping delays, recycling, urban development, availability or access to water and other resources.
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