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Answer each of the following questions completely. Be sure to explain the rationale behind the choices you make. Questions with one-word answers such as "yes" or "no" will be awarded NO credit. The only answers that do not require an explanation are calculation problems. Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem. An explanation is ALWAYS more than one sentence and a basic guideline is that if you have less than six sentences, you probably do not have an adequate explanation.
Complete the following cost table:
Quantity
Average Cost
Total Cost
Marginal Cost
1
$700
2
2 $600
3
3 $500
4
4 $450
5
5 $400
6
6 $450
7
7 $500
8
8 $700
Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
Provide a graph of the Solow model, indicating the position of the golden rule level of saving (SR), and explain why it is preferred.
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
You are trying to decide whether to buy some laptop computers for your business in either Canada or in United States. Looking at identical machines on the Dell Canada and the Dell US web sites, you find that they sell for US $2000 (US dollars) in ..
Life insurance companies require applicants to submit to a physical examination as proof of insurability prior to issuing standard life insurance policies.
The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.
There are 10 identical firms that have the common cost function c(y) = y 2 + 9. The industry demand function is given by X (P) = 200/
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity.
Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change?
Robin and Terry are Stranded on a deserted island and consume two products, coconuts and fish. In a day, Robin can catch 2 fishes or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut.
Suppose two identical firms produce widgets and they are the only firms in the market. Find out the Stackleberg Equilibrium.
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