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An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's monthly demand for phone calls is Q1 = 2,800 - 200p (with p measured in cents) and Firm 2's is Q2 =5,000 - 100p. The marginal cost of providing a phone call is 6 cents. Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Engineers at the national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline.
Compute the short-run profit maximizing level of labor and capital demand. Compute the long-run profit maximizing level of labor and capital demand.
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
Assume an economy in which the reserve ratio is 15 percent, people hold 10 percent of their deposits in the form of cash, and there are no other leakages.
Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment
Calculate the expected level of demand in a typical market. Indicate the range within which actual demand is expected to fall with 95% confidence.
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
Read the following text and answer the questions below: Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
There are 10 identical firms that have the common cost function c(y) = y 2 + 9. The industry demand function is given by X (P) = 200/
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
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