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A single-price monopolist sets price?
a. where MR=demand.
b. where supply=demand
c. from the demand curve at the quantity for which MC=MR.
d. where MR=MC.
Compute the aggregate demand curve and aggregate supply curve that would maintain the state of economy in less than full-employment level of real GDP.
Illustrate the effects of the following on the money market diagram. Show what happens to the interest rate in each case.
illustrate what can you say about cost elasticity of demand for DVD players. Will cost reduction necessarily lead to an increase in profits for DVD player manufactures.
The production function : q = L. This function is widely used in economic research. Using the function, show the following. statement in mathematical proof:
Illustrate what relationship must hold between x and p so that A second order stochastically dominates B.
Suppose an economy produces three goods (rice, bananas, and strawberries). Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.
There is a market with inverse demand given by p(Q) = 240Q. Firm A (the incumbent) has to make an irreversible decision on how much capacity to build. After A decided on its capacity, Firm B (the entrant) will decide whether or not to enter this mark..
show the new quantity demanded at that price as we did in class. Also, show that the new total revenue will be greater than then old total revenue.
Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Explain why it costs the government (taxpayers) more to subsidize this..
q1. you bought two new cds with the last 30 in your checking account and your next payday is on monday. what is the
How will you consider the structure of the fresh salmon industry to calculate the forecast. Will you advise the firm to enter the industry.
Illustrate how the market, if left alone, would move us out of the recessionary gap. Also, explain all, if any, fiscal policy steps that can be used to lift us out of the recessionary gap. Explain which method, the market or fiscal policy, do you ..
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