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Suppose that the inverse demand curve is: p(q) = a - bq; and the cost function is: c(q) = cq:
(a) Draw a graph showing the demand curve and marginal cost curve, with dollars on the y-axis and quantity on the x-axis.
(b) Show the quantity on that graph that maximizes total surplus. Denote that as q. Illustrate the price corresponding to that quantity, and denote that price as p.
(c) How much consumer surplus is generated when the price is p? How much producer surplus is generated at p? Show on your graph and also compute the algebraic answer.
What would be the effect of sequestration in the neoclassical model? Show graphically and explain. Assume the economy starts at full employment.
In performing a test of controls for sales order approvals, the CPAs stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low of 5 percent. They anticipate a deviation rate of 2 percent. What type of sampling pl..
Mr. Smith has saved $1,800 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7,500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5,000 per year. In the eighth year, he decided to ..
The function for the net exports is NX=200-100e, where e, is the exchange rate, and the exchange rate is initially 1.0.
Determine the effect of expansionary monetary policy in the AS/AD model when the economy.
BP Oil is in the process of replacing sections od its Prudhoe Bay, Alaska oil transit pipeline. Illustrate what required return does the project become financially unacceptable.
Discuss the concept of “jurisdiction” discussed in the text on pages 83-92, including its application in the Federal Court System and the various State Court Systems.
how do shifts in provide also demand influence price, quantity also marketplace equilibrium of toilet paper.
John advertises his used car for $5,000 in the newspaper. He would be willing to sell his car for as little as $4,000. Bill values the car at $4,800 but offers $4,500 for it and John accepts. How much producer surplus is created by this trade? How mu..
Insurance agents receive a commission on the policies they sell.
Explain how should it be allocated. Explain hardwood usage in the two lines of product are.
Because of the free-rider problem
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