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Q. Illustrate what fiscal and monetary policies would you recommend in order to close a recessionary gap. Would you recommend what expansionary polices?
Suppose you are an analyst for the Coca-Cola Company. An individuals' inverse demand for Coca-Cola is estimated to be P = 98 - 4Q (in cents). If Coca-Cola is produced according to the following cost function C(Q) = 1,000 + 2Q (in cents), compute the optimal price and the number of cans to sell as a single package.
Why might leasing a new Porsche be good investment for an aspiring Hollywood film producer, even though, he can't easily afford the monthly payments.
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
.Compute by how much monetary policymakers mllst change the nominal money supply for the expectations of firms and workers to be realized.
If the market price of the product is 270, how much output should the firm produce in order to maximize profit. How much profit will this firm make.
Compare the sum of consumer and producer surplus for the monopoly with the results for perfect competition.
Consider the first price auction. Write down the payoff matrix also find all Nash equilibrium
If the company requires a minimum return of 25%, illustrate what should be the minimum yrly sales for 12 yrs to justify the investment.
Suppose that the only input used in the generation of solar energy is sunlight
Complete the columns for to conclude the profit maximizing output for this firm. Draw the relevant graph to show the profit maximizing output.
What will the effects of the tax be in the short run on industry output and price. Will the price rise by the full ?ve cents in the short run.
The local community has instituted a price ceiling of $480. Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling
Decreasing returns to scale refers to a situation where an increase in a firm's scale of production leads to lower costs every unit produced.
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