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Suppose the market demand function (expressed in dollars) for a normal product is P = 480 – 4q and the marginal cost of producing it is MC = 2q, where P is the price of the product and q is the quantity demanded or supplied. Here are the specific questions: (show your work).
How much would be supplied by a competitive market?
What would be the magnitude of the net benefits (in dollars)? Draw your answer on a graph as well.
Suppose the government restricts output to q = 20. How much is net benefit reduced?
The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years.
q1. following are observations on the market cost and the quantity of good x produced and consumed in three different
Why is the cost of health care so high in the U.S. and the U.S. does not have the best system. If a person has co-pay health insurance what does he/she base his/her purchase decision on, the real price or what actually comes from his/her pocket? How ..
What would be the percentage change in apple unit sales if the price of apples decreased by 10%? What would be the percentage change in apple unit sales if the price of pears increased by 5%? What would be the percentage change in apple unit sales if..
Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a good destroys your house, in which case it will be worth $0. You have $50,000 in your bank account. What is the expected value of your ..
Suppose robotic technology improves the results of abdominal surgery - less time to perform the surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal surgery usin this new technology?
q1. assume which a risk-free investment will make three future payments of 100 in one year 100 in two years and 100 in
Plot the demand and supply curves for this market. Show the equilibrium price, and quantity for electricity. Label consumer surplus, producer surplus, and cost of goods sold on the figure you have drawn. Compute equilibrium price (P*), equilibrium qu..
discuss whether you agree or disagree with Chairman Bernanke's remarks on economic outlook and the role of the Fed' s monetary policy effectiveness by using unconventional policy.
Why is depreciation of capital good a cost of society. In illustrate what ways does a person's health depreciate. Why might older people's health care expenditures increase in Grossman model even though their desired health stocks may be lower.
Draw the payoff matrix for this game. Elucidate any possible Nash equilibria in pure strategies for this game.
What is the point forecast of sales in the next time period? What is the 95% forecast interval for the next period’s sales figure? (use z = 1.96)
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