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Consider a situation where a monopolist faces the following inverse market demand curve p = 100 - q and the following cost function TC = 4q + q2
a) derive the marginal revenue and marginal cost functions
b) what are the equilibrium price and quantity if this market behaved as if it were perfectly competitive?
Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
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Suppose the employees of Starbucks in China are paid 8 Yuan per hour and a cup of coffee is priced at 8 Yuan. If Starbucks is maximising its profit, a what is the value of marginal product of labour (VMPL) per hour of the last worker employed by Star..
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Absalom Motors's 15% coupon rate, semiannual payment, $1,000 par value bonds that mature in 30 years are callable 4 years from now at a price of $750. The bonds sell at a price of $1,300, and the yield curve is flat. Assuming that interest rates in t..
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The difference between playing a board game and playing a video game is the a) eliminatiion of free riders b) technology of the video game c) involvement of fewer rivals or d) involvement of free rider
Which statement about inflation targeting is true?
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