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1. You are given the following information on the macroeconomy: Consumption: 300 + 0.75Y Investment: 200 + 0.10Y Government Spending 500 Exports 100 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million. 2. Suppose the demand curve for a monopolist is Q = 1000 - P, and the marginal revenue function is MR = 1000 - 2Q. The monopolist has a constant marginal and average total cost of $100 per unit. (A). Find the monopolist's profit-maximizing output and price. (B). Calculate the monopolist's profit.
1. john earned 100000 last year and paid 10000 in income taxes. mark earned 50000 last year and paid 5000 in income
Consider now that the entrant, if fought, has the possibility of withdrawin from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player).
Graph the firm’s long-run average cost and show that it reaches a minimum where q =1. Determine the long-run equilibrium price (p*) and the firm’s long-run equilibrium output (q*).
which of the following examples is an adverse-selection problem and which is a moral hazard incentive problem?nbsp
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