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A monopolist faces a demand curve given by
P = 40 - Q where P is the price of the good and Q is the quantity demanded.
The marginal cost of production is constant and is equal to $2.There are no fixed costs of production.
A firm has two factories, one twice as large as the second. As the number of workers at each factory increases. Illustrate which factory will experience diminishing returns first.
What is the marginal revenue of a firm that sells a product at the price of $15 and the price elasticity of demand for the product is -2? What is the price elasticity of demand of a firm that sells a product for $20 and marginal revenue is $12?
Explain the conditions under which a natural monopoly would emerge. Why are natural monopolies often regulated by the government?
Explain how do you calculate the cost index using the nominal GDP to get the real GDP in billions
Globalization engenders positive benefits via enhancing flexibility in the labour market in developed nations.
Illustrate what is the (true) value of the marginal product of each black worker. Discuss the employment decision made by firms for which d = 0.2 and d = 0.8 respectively.
From institution-based and resource-based views, identify the liability of foreigners confronting MNEs from emerging economies interested in expanding overseas. How can such firms overcome them?
Use the principles of supply and demand to address a predetermined goal (set by you) in the gasoline market. Be clear on what the current market indicates and why and what your future goal is. We will probably revisit some of your choices in future m..
What is the duopoly Cournot equilibrium - that is, the quantities produced by each firm - if the market demand function is q(p) = 1000 minus 1000p, and each firm has a cost of dollar0.28 per unit?
In recent decades, trade has been growing faster than income for many countries. What combination of trade effects is sufficient for this to come about? Is this behavior consistent with the Rybczynski theorem? Under what circumstances?
Assume the market for bagels is in equilibrium.
A consumer deposits of $1,000 in currency into her checking account. The bank sets aside $200 aside as required reserves (i.e. assume a 20% minimum reserve requirement), and then makes a loan of $800 to a new borrower.
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