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Suppose a competitive market consists of identical firms with a constant lon-run marginal cost of $10. (There are no fixed costs in the longrun) The demand curve is given by q=200-p
a) What are the price and quantity consumed in the longrun competitive equilibrium?
Illustrate what did the USA do like other countries as well after the first oil price shock.
Proide that the economy grows is allowed to grow through the banking system and the creation of money through lending.
What is hyperinflation How does hyperinflation occur?
What are the needs of big companies presently. Do you think it is paying higher salary so people will be more motivated.
For any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits. Suppose there is a sharp improvement in the technolog..
suppose that you are an intern for a state legislature that is considering how to vote on a bill that would legalize marijuana. An economist has testified that legalization would decrease the price of marijuana by 80% in his estimation.
Suppose that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply and the price of the good
Illustrate what are possible causes of a movement up or down along the demand curve. What are possible causes of a movement up or down along the supply curve.
Two days after his death, the Wall Street Journal ran a lengthy editorial tribute to Ronald Reagan, in the editors' estimation the most important president since FDR. In their paean to the fortieth president, Reagan gets credit for everything from..
The “Take It Home Today” promotion guarantees buyers of new plasma TVs that they are entitled to get any sale price the company might offer for the next 30 days. Do you think such a policy will increase demand for electronic appliances.
Illustrate what value for r is optimal for the seller, and what then is the seller's expected profit.
Your richrelative died and left you $100,000, which you decided to use for your own Internet business and what will be your fixed and variable costs? Briefly discuss.
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