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Microsoft Word - Problem Set 9
Consider a competitive firm with the following short-run cost function: c(y) = 3y^2 - 16y + 30
A) Calculate the firm's average variable cost
Find the Cournot solution for the market price and output of mineral water and illustrate with a simple graph and the marginal revenue function facing a monopolist is given by: MR = 200-20Q Demonstrate that firms A and B have an incentive to coopera..
One of the fundamental differences between Keynesian and Classical economics is their view of equilibrium in the macro economy.
a private-garage owner is currently charging his customers 1.75 per hour. but he is considering changing the way he
What is meant by stagflation. What economic circumstances might lead to a period of stagflation. In terms of the AD/AS model and/or the Phillips curve model, explain what is necessary to end a period of stagflation.
The cost of transporting goods and the price of obtaining information has decreased substantially over the past 100 years.
What is the consumption function and how is it related to the Marginal Propensity to Consume? 2. What is the multiplier? 3. What determines the position of the Long Run Aggregate Supply curve? 4. What is a supply shock? Give several examples.
The impact of a decrease in the price of memory chips on the market for computers and impact of the government imposing a price ceiling on apartment rents
consider the following utility function uxy min 3x xy 2y. sketch the indifference curves and show where the corners
exchange in an island economy.robin and terry are stranded on a deserted island and consume two products coconut and
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Suppose that the average variable cost of the firm is given by AVC(q) = 3 + q. Suppose that the firm"s fixed costs are known to be $3. Will the firm be earning a positive, negative, or zero profit in the short run?
The self-correcting mechanism would be expected to be very rapid in an economy with, Assume a single macroeconomic model. When inventories rise unexpectedly. Equilibrium GDP will not exist where outputs exceeds aggregate demand because businesses wil..
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