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Question: You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your products is better than the competition, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is Q = 1500 - 5P and all five firms produce at a constant marginal cost of $120. For security reasons, the government has imposed restrictions that permit a maximum of five firms to compete in this market; thus entry by new firms is prohibited. A member of Congress is concerned because no restrictions have been placed on the price that the government pays for this product. In response, she has proposed legislation that would award each existing firm 20% of a contract for 700 units at a contracted price of $160 per unit. Would you support or oppose this legistration?
Qd=160,000-2000P Qs = 40,000+2000P MEC=.0006Qs. Qd is the quantity lots of paper Qs is the quantity supplied and P is the price per lot of paper.
Find the optimal level of production in each of the three periods and the total cost involved by solving it as an initial value problem.
A government is running a balanced budget. An election is approaching and the gov- ernment decides on a one-time, temporary massive tax cut that will cut tax revenue by $50 billion in one year; after the year is over, tax rates and tax revenue ret..
Explains the policy. Gives an example where it has been used. Explains why it is has improved the problem it was meant to correct. Explains how economic principles are used in the design of the policy?
Analysis: analyze causes of the event or issue; analyze effects on the market and/or the economy. Conclusions based on your knowledge of economic theory.
in class we covered the concepts of producers and consumers surplus.a. with respect to different government policies
5. Explain how the factors below contributed to the subprime meltdown.(a) Financial innovations in the mortgage markets.(b) Agency problems.(c) Information problems Briefly discuss the political economy of a typical banking crisis
You are a risk-neutral person whose net worth is $450,000. There are three possible outcomes. Calculate your net worth at each of them
Does this company have an established code of conduct? Would you consider this brand socially responsible today? Explain
Which project would you select, calculating on the basic of the benefit-cost ratio on incremental investment - tourism project justifiable according to the benefit-cost analysis?
Explain how you knew the price earnings ratio was attractive and unfavorable.
Who is willing to sell at a price of $25? Click on table rows to make selections. Your selection:
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