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Suppose a monopolist can purchase Labor at a price w = 1 and can purchase Capital at a price r = 9. The monopolist’s production function is given by Q = L^1/2(K^1/2). The demand facing the monopolist is given by P = 78 – 6Q. a) What is the Monopolist’s total cost function? b). What is the Monopolist's Marginal Cost?
f P falls below AC, what is result for firm? Firm loses money 16. In late-19th century, both firms and markets expanded. How did this impact competition in many markets.
Using the IS-LM model derive graphically derive the aggregate demand function. Fully explain each step of your derivations.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
The supply of paintings by Leonardo Da Vinci, who painted the Mona Lisa and The Last Supper and died in 1519, is highly inelastic. The federal government decides to require that automobile manufacturers install new anti-pollution equipment that costs..
Suppose two competing stores each announce a "low price guarantee", meaning that each store would match the prices of the other store of they were lower. Does providing this guarantee masks it easier or more difficult to overcome the prisoner's dilem..
Elucidate which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth.
During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. Use a demand-and-supply graph to analyze the effects of these ..
What is the 99% confidence interval for the difference between the two school's scores. (For consistency, let the difference d=A-B.) b. Suppose we want to perform a two-tailed test where H0 is that ?d=0. What is (approximately) the p-value of the ..
Consider the market for taxi service in Washington, DC. Use demand-supply analysis to explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following (considers each case separately; and assumes that only one..
Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers.
In Pioneer Ville, the price elasticity of demand for bus rides is 0.5, the income elasticity of demand for bus rides is -0.1, and the cross elasticity of demand for bus rides with respect to gasoline (personal consumption) is 0.2. 3. Is the demand fo..
This graph plots the supply curve for the sellers (orange squares). You need to add the demand curve. Plot the buyer values by dragging points onto the graph (blue circles). Tool tip: For information on using the graph tool, click the Help button.
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