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Problem 1:
a. Describe the term ‘inflation' and explain the relationship between money supply and inflation.
b. Describe the conditions and processes that are associated with the following types of inflation:
(i) Demand-pull; and (ii) Cost-push.
Problem 2:
a. What are the main reasons why a government might seeks to control a monopoly firm's profit?
b. Draw a diagram to compare long run output decisions for a monopolist and a perfectly competitive firm.
c. Describe why in some ways monopolies can be good for an economy.
Evaluate the equilibrium price and quantity (a) Find the equilibrium price and quantity (b) If government in trying to control the price of the good fixes the price at c550
The following are AC and TC functions for various firms (i). AC = 140/Q + 20 (ii) AC - a/Q = k (iii) TC - 10 =2Q + 0.1Q 2 (iv) TC - k - βQ = cQ 2 Where a, k, β and
Meaning of absolute cost difference and comparative cost difference.
what do you meant by rent?
wHEN WAGE IS $6.05, HOW MANY HOURS ARE WORKED A WEEK?
Name the five types of capital. The five types of capital are: natural capital, manufactured capital, human capital, social capital and financial capital.
what is the importance of law of supply
Can marginal cost be constant? If so, does this mean that marginal cost are equal to average variable cost?
Let''s assume that a monopolist decides to maximize revenue, rather than profit. How does this operating objective change the size of the deadweight loss?
Term Paper: A final paper that focuses on the course content, applied in the setting of your current or past employer, will be due in Module. In this paper you will focus on the fo
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