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Consumer Price Index explained in this solution
1. A company dedicated to tabaco has a cost and revenue function of:
CT= 20 + Q + Q2 (q squared)
I= 15Q - Q2 (q squared)
Determine the maximum and minimum amounts that can be produced where there is neither loss or gain.
2. If the consumer price index in 2002 is $175, in 2003 is $198, and in 2004 is $210, show the inflation table for 2003.
Suppose the demand curve for a product is given by Q = 300-2P+4I where 'I' is average income measured in thousands of dollars. The supply curve is Q = 3P - 50.
Prepare a demand schedule for both demand curves and prepare them on an Excel graph. Calculate the marginal revenue for each.
The subsequent table gives total output or total product as a function of labor units used. Does the table indicate a situation of diminishing returns.
Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?
Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants.
Draw a diagram describing autarky and a pattern of comparative advantage for your example.
Using the dynamic augmented Phillip's Curve model (Y/PC/MR), demonstrate the effects of the Following changes. Show both the short-run and long-run effects.
Elucidate what should the US Congress also the Federal Reserve do about it?
Assume that a company maximizes its total profits and has a marginal cost. Find the price at which the firm sells the product.
According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain. What is the impact of opening trade on the real wage in Russia? Briefly explain.
Briefly describe and critically possible short-run and long-run macroeconomic effects of this continuous increase of the federal fund rate
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
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