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A risk neutral monopoly must set output before it knows for sure the market price. There is a 50% chance the firm's demand will be P=20-Q and a 50% chance it will be P=40-Q. The marginal cost of the firm is MC=Q. What is the expression for the expected marginal revenue function?
E(MR)=20-2Q? E(MR)=30-2Q? E(MR)=40-2Q? E(MR)=50-2Q?
why do points on a utility possibility curve represent efficient allocations of resources? why must the utility
Illustrate what philosophical principle did Google's managers adopt when deciding that the benefits of operating in China outweighed the costs.
Illustrate what problem is posed by any comparison over time of market values of various total outputs. How is this problem resolved.
When interest rates in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ______________..
Consider the AD/AS model of the economy built from the IS/LM, and assume that the SRAS is upward sloping. The economy is currently operating at the full employment level of output. What are the short-run effects of the decrease in the MPC? What are ..
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
q1. suppose that the market for wheat is characterized by the following demand and supply relationshipsdemand
As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your mov..
If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?
Discuss the following excerpt from a recent story in the Wall Street Journal. In your discussion demonstrate that you can use the concepts of: "price discrimination" and "barriers to entry" to explain: A) the current success of Harrah's strategy; and..
What determined movements of gold between countries under the gold standard, and why? Under the gold standard "rules of the game" would such movements be likely to consume until a country's gold stock was depleted? Why or why not?
Which of the following is NOT an incentive scheme to ensure that workers do a good job?
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