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Carefully explain what will happen as we move from the short run to a long run equilibrium in a monopolistically competitive industry if firms are making a positive profit in the short run. Your explanation should clearly state what will happen to the demand curve facing an individual firm and the reason why this happens.
What do you think about the most important determinants that impact demand for banking industry's product or service and determine the impacts of innovation and technology on the cost of production?
Does a monopolistic competitor produce more or less output as compared to an efficient level of production Explain. What are the benefits and drawbacks of this Should the government intervene to alter this
Suppose there is a tax cut, holding constant government purchases and all other factors affecting the AD curve. Illustrate the short run effects on output and the price level and LABEL them.
Suppose Mabel has a utility function U = I1/2. What is Mabel’s general attitude toward risk? How do you know? Explain.
1.An introduction to the company and its industry, analyzing its background, industry, and structure. (For this, you can draw from the work you did for the second Unit 2 assignment.)
create an idea for your own mnc to conduct international business. your idea should be simplified to the degree that
Consider a market characterized by the following inverse demand and supply functions: PX = 50 - 4QX and PX = 10 + 2QX. Compute the surplus producers receive when a $30 per unit price floor is imposed on the market.
What are the basic objectives of monetary policy?
In the competitive industry, reduction in property tax rate on fixed capital (plant) would reduce the fixed cost of all firms. This would have the following short-run effects on P, Q, and q respectively.
you are the manager of a firm that receives revenues of 40000 per year from product x and 70000 per year from product
1) list examples of flows of real or physical factors between government and households:
Derive the FOC and SOC conditions of profit maximization for this firm. Show that SOC is satisfied (impose necessary conditions). Which plant will have a greater increase in output? Please explain why.
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