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You learn that the demand curve facing a monopolist can be written asP = 100 - 5Q, and the monopolist's marginal costs are constant at MC = 60. There are no fixed costs. Write down the equation of the marginal revenue curve for this monopolist. Graph the demand, MR, and MC curves, using a vertical scale of 10 per grid. What quantity will be produced to maximize profits? At what price will the monopolist sell? Do the quantity and price that you found satisfy the market demand curve.
Illustrate what are the major performance goals that we set for the economy, and how do we measure the performance?
During the Great Depression, the US economy experienced many bank runs, to the point where people became unwilling to keep their money in banks, preferring to hold on to their cash.
Find the new equilibrium real interest rate and the corresponding levels of consumption, investment, national saving, private saving, and government saving. Find the equilibrium real interest rate r . Find the equilibrium levels of consumption, in..
If the airline industry was operating under other market structures, explain how would equilibrium price and equilibrium quantity differ
Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants.
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
Disclose what the book suggests once the short-term rate is much cheaper than the long-term in interest rate. Substantiate whether or not that is a normal occurrence or a cause for alarm.
The ability for economy to eliminate any imbalances in actual and potential output is sometimes called self-correction. Using an aggregate supply and aggregate demand diagram,
Say your parents give you a car for your birthday. It is not the new model you wanted, but it's in very good condition.The cost of keeping the car to you is.
Airway Express has evening flight from Los Angeles to New York with average of 80 passengers and return flight the next afternoon with average of 50 passengers. Should the airline remain in business?
In short, the only difference is the exponent of At in the (final good) production function, so that now there are diminishing returns to ideas in that sector. Provide an economic interpretation for the first equation. What is the growth rate of kn..
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