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Suppose there are ten firms in a monopolistically competitive industry, each with an equal share of the market. The market demand is given as Q = 10200 – P. Each firm has a total cost function TC = 51000 + 500q2. Assuming the industry is in long-run equilibrium, what level of output does each firm produce and what price does each firm charge?
Elucidate is the efficient yearly output of paper and how can this be achieved.
What is the average time period for the introduction of a new drug into market? One act passed by the federal government aimed at reducing the monopoly power of patented drugs was. Which drug is likely to be the most profitable for its producer (in t..
Terry has a demand function for oysters given by the equation q=.02m-2p, where m is income and p is price. Terry's income is $8,000 and he initially has to pay a price of $40 per oyster. Assume the price of oysters rises to $80. Calculate the substit..
A sum of money Q will be received 6 years from now. At 5% annual interest, the present worth of Q is $60. At the same interest rate, what would be the value of Q in 10 years?
Suppose that the labor market is competitive and there are a total of 1,000 black workers and 1,000 white workers (who each supply their labor in elastically). Both black and white workers are equally productive, having constant individual dollar pro..
illustrate what would be the government spending multiplier. What would be the taxation multiplier.
Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project...
An individual is borrowing $175,000 for a 20 year loan at 3.95% per year compounded monthly. Immediately after the 104th monthly payment, the home owner plans to sell the house. How much money is owed back to the bank? What is the effective annual r..
Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in se circumstances. Can Sophie be held personally liable.
Why do economists use economic models when making predictions or assumptions about the economy? Which economic model do you believe is the most beneficial to YOU at the present time? Why? *Economic Models: circular flow diagram, production possibilit..
Explain how the Lourve Accord represented a type of exchange-rate system. What is the principal responsibility of a currency board? What are the three main restrictions on a currency board that make it different from a typical bank?
Sammy has a drone that he values at? $1,500. Dean values the same drone at? $2,000. Sammy decides to sell the drone to Dean for? $1,800. What is the total cooperative surplus gained as a result of this? trade?
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