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You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3Q and C(Q) = 1,500 + 2Q2, respectively.
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
Discusse the impact that trade restrictions such as tariffs and quota have on the price of imports.
Assume the USA and Canada are considering to trade. Assume there are only two goods in the economy: potatoes and rice. The table below illustrates what each country can produce in a given year.
Please elucidate the likely effects on Savings (Gross Private Domestic) Investment, Long Term Real Interest Rates, The Capital Stock, Natural RGDP.
Tired of spending so much on clothing, Macklemore begins to shop at a thrift shop, where he "pops some tags" and is able to find clothing for as little as $2 a piece. On the graph in part (d), draw Macklemore's new budget line. Is clothing a norm..
Milton Friedman faiths in a steady growth monetary policy. Illustrate what does that mean and critique this approach.
How the Unemployment Rate Affects the U.S. Economy and how the Unemployment Rate Affects
GDP only raise by three quarters of the expected amount. Illustrate what factors might be responsible for this situation.
Toys unlimited LTD., must predict sales for popular adult computer game to avoid stockouts or excessive inventory charges during the upcoming Christmas season.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Suppose the consumer/worker values two things: a consumption good C and leisure L. Suppose that there are 24 hours in a day and the consumer/worker has a utility function U (C, L) = ln C + L The price of consumption is P and the wage rate is w: Yo..
Explain how would you justify the long-term nature of your contract with CGI Group.
Under the maturity extension program, the Federal Reserve sold or redeemed a total of $667 billion of shorter-term Treasury securities and used the proceeds to buy longer-term Treasury securities, thereby extending the average maturity of the secu..
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