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Consider a competitive firm that faces a linear demand curve, P = 6-3Q,
where Q is the quantity demanded and P is price.
The firmâ€TMs total cost is: TC = 3Q
1. What output level will the competitive firm choose in order to maximize its profit?
2. What is the price at this output level?
Suppose apples also oranges are substitute. Presume apple growers launch a very successful advertising campaign that convinces consumers apples are a better product.
Illustrate what is the relationship between marginal revenue also marginal cost as the firm increases output?
Suppose without trade, country A produces and consumes 100 units of widgets at a price of $10 each. Illustrate what is the total gain or loss from trade for country A.
Solve for equilibrium real output and also solve for the equilibrium interest rate.
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Decide whether the demand for paint is elastic, unitary elastic or inelastic. Explain you're reasoning also interpret your results.
Why did the ban effect the price? Illustrate using a figure and explain. Show the welfare effects in your figure. Use a table to show who gains or loses.
using IS-MP and PC graphs analyze the following scenario on the economy specifically, how and why will real output (GDP) be affected in the short run.
If the government purchases also taxes are both increased by $100 billion simultaneously illustrate what will the effect be on equilibrium output.
If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money-creating potential of the commercial banking system will.
Are these preferences consistent with the lw of diminishing marginal utility
Does overvaluation (undervaluation) of As currency reflect a major capital inflow (outflow) into country. What can you find with respect to financial account of balance of payments to substantiate that interpretation.
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