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The Kinked demand curve in an oligoolistic market is represented by the following:
P = 100- Q and P = 120-2*Q
The oligopoly firms have constant marginal costs at MC = 40
What is the profit maximizing price and level of output?
Assume the rural wage is $1 per day. Urban modern sector employment can be obtained.
A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts is 30...
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money a..
Calculate the markup percentage also target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component.
Rise in customers income will make increase in the quantity demanded.
Several cities regulate the taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to hood of the cab,
Assume the situations faced by the subsiquent individuals. Who gains and who loses.
The Federal Reserve was established in 1913 and is, therefore, a “creature of Congress.” The President of the United States nominates members of the Board of Governors of the Federal Reserve, subject to confirmation by the Senate. However, the Federa..
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment.
As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following What two policies could you use to reduce the total amount of emissions
Elucidate assumption concerning economies of scale will give rise to a determinant and optimal scale of the firm in Long run equilibrium in perfect competetion.
An economy is operating with output $400 billion below its natural rate, and fiscal policymakers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding ou..
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