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A monopoly has a total cost function of C(Q) = 8Q and faces a market demand Q = 100 ? 2p,
(a) calculate the deadweight loss;
(b) The firm now spent an amount equal to half of its current profits to obtain a monopoly. Evaluate the additional social loss (loss in profit).
The United States postal service report 95% of first class mail within the same city is delivered within two days of the time of mailing. Six letters are randomly sent to different
discuss modern theory of determination of rent?
Aggregate Consumption This is the aggregate of all expenditures on current consumption goods and services i.e. those which are consumed during the period. Living standards are
What are the important tools of making decisions? Making Decisions: a. How economists model decision making through individuals and firms b. Implicit costs and Explicit-C
Ask question difference between static multiplier and dyanamic multiplier
Suppose that the yield curve is flat at 5% per annum with continuous compounding. A swap with a notional principal of $100 million in which 6% is received and six-month LIBOR is pa
#types of economic systems
An article published in Die Zeit on 25 March 2010 analyses the German policy that allows for only moderate increases in wages. According to this article, the unit labor costs in Ge
In our 2 period consumption savings model (with no leisure, u(c1, c2), suppose interest income in period 2 is taxed at the rates, where 0 a) Write down period 1 and period 2 bu
what is the difference between classical and non-classical model
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