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Suppose we have a competitive market for a good with domestic demand and supply given by:
P = 310 - .05QD
P = 30 + .03QS
International supply is given by a constant competitive price of P1 = $90.
Finally, suppose that there was no international supply, and that the domestic market given by the above equations was the only market for this good in the world. What export tariff could the government impose to create a global monopoly?
Write down the relationship between savings, capital formation, and consumption.
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
What is the profit-maximizing price for this firm? On the graph show the area, which area represents the net loss to society resulting from the monopoly power conferred by the patent?
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
How income may change savings behavior
Suppose the emarginal cost of producing the good in before question is aconstant $ 10 per unit of output . What quantity of output will the firm produce.
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
According to the quantity theory of money, what is the effect of increase in quantity of money?
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