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Suppose the market demand function is given by: Q=100-2P, where Q: total quantity, P: market price. And in this market there are two firms with MC=AV= $10. Find each of the following:
Collusion quantity, profit from collusion?
q.1. assume that you are to estimate the costs of eithera project proposal to construct a dam in your local area for
Political Instability Abroad Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets. Refer to Political Instability Abroad. What would t..
Illustrate what are the values for Qi and Di on the effective date of the study. If the economic limit is 20 BOPD, estimate the ERR.
What is the present value of the following series of prospective payments?
Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy,..
The kinked demand curve model can be used to explain the sticky prices n markets characterized by oligopoly. A typical kinked demand curve consists of two straight lines joined at the kink. ( a piece -wise linear where P is price (in dollars and Q is..
A 10-year project is evaluated under two scenarios: (i) with inflation, and (ii) without inflation. Without inflation under 10% interest rate its present worth is $21,851. If annual inflation of 2% is assumed, then the project's present worth becomes..
One reason for raising interest rates was the prospect of a refinancing issue: a $12 billion issue matures April 1, and the government is expected to seek some new money, in excess of its refinancing needs.
What are the main influences on the quantity of real money that people and businesses plan to hold? What does the demand for money curve show?
Rather than the short run effects of decreasing government spending, allow a self correcting economy to bring the model back to equilibrium, the government decides to act to eliminate the output gap through monetary policy. Explain how the government..
The success or failure of economic policy with regard to the twin goals may be measured by the
An engineering company just purchased a new CAD software for $8000 now and annual payments of $500 per year for 6 years starting 2 years from now for annual upgrades. What is the present worth of the payments if the interest rate is 6% per year?
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