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Market failures (even when they do not have international external effects) i) Self-fulfilling bank runs, government debt runs, currency crises. ii) Liquidation costs of li
explain nature of microeconomic
Stock of durable goods on hand: If the economy has enjoyed an extended period of prosperity, consumers may find themselves well supplied with various durable goods, e.g. cars,
Solve equation P=200-Qs and Qs=4.5p +5
maximum profits will occur at the output level
Short run equilibrium - Perfect competition: In the short-run, the perfectly competitive firm maximizes its profit by producing output where MC=MR=P. This is shown in the diag
periodic table
If the inverse demand curve is p=120-Q and the marginal cost is constant at 10, how does charging the monopoly a specific tax of r=10 per unit affect the monopoly optimum and the w
How would you construct an estimate of marginal cost, & ?C(w, y) , in each period? ?Y
what is the second best?prove the theorem with the help of a diagram?
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