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A firm faces the following inverse demand equation for the commodity it produces: P = 100 – Q where P represents the price/unit of the commodity it produces and Q represents the level of output produced. The cost structure of this firm is summarized by the following Total Cost function: C = 1/3 Q3 – 7Q2 + 115.75Q + 20 where C represents the Total Cost of production.
Find the benefit (profit) maximizing level of output?
What are this firm’s maximum benefits (profits)?
You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The profit-maximizing price is
How did the role of the International Financial Institutions (IFIs) change from Bretton Woods to Neoliberal Globalization? Elaborate your answer by identifying key aspects and principles of the Structural Adjustment Programmes (SAPs).
A particular good, an 8 percent increase in price causes a 12 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
q1. elucidate how do the gdp per capitals change after accounting for price indices? explain why is it significant to
A perfectly competitive firm uses capital and labor to produce output, in the short run, according to the following production function: Q=K1/2L1/2 1. Find the amount of capital and labor that will maximize profits 2.Show second order conditions for ..
The following equations apply to an economy: C=400+.9(Y-T) I=250-50r (M/P)d=Y-300r You also know that government spending and taxes are 500 and the nominal money supply is 4000. The price level is 2. Make sure you simplify your equations. What are th..
What is the best practices frontier? How does this relate to competitive advantage? Explain why rent seeking competition tends to dissipate rents-to drive them down so that there are no abnormal rents?
In a 100% socialist structure, the owners would be faced with what challenges? They lose the opportunity to make and hold onto extreme profits. They assume all the financial risk if their businesses fail. They no longer can change careers because the..
Let Y represent income and L represent hours of leisure. Mike's utility for income and leisure is U(Y,L) = Y x L so that marginal utility of leisure = Y and the marginal utility of income = L. Total hours available for leisure and work in any given w..
When the Fed adds new reserves to the system, some of these new reserves find their way out of the country into foreign banks or foreign investment funds. In addition, some portion of these new reserves ends up in people's pockets and mattresses inst..
Draw the graph of the indifference curve maps for each scenarios. Put good X on x-axis and good Y on Y-axis. Draw 3 indifference curves and labeled U1, U2 and U3 from the highest to the lowest utility level. a. Good X is economic bad. For good Y, mor..
critically estimate the theory and empirical evidence on the optimality criterion for choosing an exchange rate regime.
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