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A natural monopoly has a cost function c (q) = 400 + 25q and market demand D (p) = 200 - 2p. What are the monopoly's profit, output, and customer surplus when the price is set to marginal cost? Average cost?
The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD model.
If the bank maintains a reserve requirement of 2 percent, what is the maximum loan that the bank A can make?
Suppose the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off? Explain.
Policymakers around the world often face what Obstfeld and Taylor dubbed a `policy trilemma': They want capital mobility for efficiency and edibility purposes;
under what conditions will an increase in the price of a product lead to a reduction in total spending for that
Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).
suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. then inflation turns out
Jeffrey has his own delivery business, but Discrimina has only paid him cash. Each time, Jeffrey has given the company a receipt for the cash. While he waits, he sometimes goes out for donuts for the crew.
Being a rational consumer, at August prices Tony purchased 25 nuts. How many berries did he consume in August? What was the marginal rate of substitution at the optimal consumption bundle
Calculate what would be the minimum annual vehicle use in km/year that would justify the choice of a diesel engine car over the petrol version? Does this correspond to your answer to 4) above?
Presume the marginal cost of production for a company is $6 at its current production levels. Presume the price elasticity of demand is constant at -2 among prices of $10 to $1, if current prices are $10, is the company pricing at the correct optimal..
Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the price of goods will soon follow." How does this work?
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