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1- What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit?
2- How does a single-price monopoly determine the price it will charge its customers?
3- What is the relationship between price, marginal revenue, and marginal cost when a single-price monopoly is maximizing profit?
Suppose that an economy’s production function is cobb-douglass with CRS(Y=AK^α * L^1-α ) and α=.3. What fractions of income do capital and labor receive? Suppose that the capital stock decreases by 15 percent. How much does output increase or decreas..
Suppose that the production function for Hannah and Sam’s home remodeling business is Q = F(L, K) = 10L0.2K0.3. If the wage rate is $1,500 per week and the cost of renting a unit of capital is $1,000 per week, what is the least-cost input combination..
If inflation averages 4 percent per year and your return on an investment, based on then-current dollars (market rate) is 10.5 percent, what is your real return on investment?
Fiscal stimulus to aid recovery from a recession will be most effective in the long run if______________
The Heckscher-Ohlin model is about how factor abundance/scarcity affects trade. Consider factors such as capital, skilled labor and unskilled labor. It is usually held that developed countries are relatively abundant in capital and skilled labor, and..
Using the results obtained in part (b) and part (c), derive the monopolist's short-run profit-maximizing level of output.(e) Determine the price charged by the profit-maximizing monopolist and the amount of profit earned.
The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2. Suppose that a new tax of $3 per sack of rutabagas is introduced.
The European Central Bank has recently announced a program similar to the quantitative easing (QE) carried out in the USA (see the link below for details). What is the macroeconomic rationale for this? Do you think this program will work in the Euroz..
Suppose that annual income from a rental property is expected to start at $1,000 per year and increases at a uniform amount of $50 each year after the first year for the 10-year expected life of the property. Assume an interest rate of 10%/year. Assu..
Suppose the economy is initially in short run equilibrium at a level of output above the natural rate. Use the IS-LM model to graphically show how the levels of income and interest rates change as the economy returns to the natural rate of output in ..
The current inflation rate in Iran is roughly 23% per year (because of economic mismanagement and UN sanctions). How should a prudent Iranian invest a large sum of rials today to preserve/grow its future value?
The N.M. Corporation has exactly the same costs of production as last year except for fixed cost, which are $50,000 this year compared to $30,000 last year. Which of the following statements is false?
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