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In order to maximize profits, monopolies produce where: MARGINAL REVENUE = MARGINAL COST < MARKET PRICE. Contrast this to the profit maximization condition for perfectly competitive markets and explain how these differences contribute to deadweight loss in a monopoly market. Can you think of reasons why a monopoly might decide on their own to increase production and lower prices to earn an acceptable profit rather than maximize profits?
Determine which of following independent projects should be selected for investment if $325,000 is available and the MARR is 10 percent per year
Get a copy of the latest Federal Reserve bulletn at your library and find out the most recent data on m1, m2 and m3. How have these aggregates been growing in the past year compared with the values? (Dean Croushore, Money and Banking).
Price elasticity of demand is constant if the slope of the demand curve is constant, terms of quantity changes and price changes
A great deal of expensive research is invested in developing technologies to deliver productive agriculture. Horticultural efforts to breed hybrid crops are seen as far back as history can observe, and there have been efforts to domesticate improv..
Suppose that the nominal rate of inflation is 4 percent and the inflation premium is 2 percent. 1.What is the real interest rate Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.
Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..
Find the equilibrium price and quantity algebraically and check that your solution is consistent with your sketch. c) If the government imposes a fixed tax of £8 on each unit of a good, show how the supply curve is affected both algebraically and..
Can democracy survive if a majority of the citizenry pay little or nothing in taxes while benefiting directly from a higher level of government spending? Why or why not? Discuss.
The company selling the good starts an advertisement campagin that has the following effect on the consumer: he makes decisions as if maximizing a decision utility function given by ..
Draw a graph of the aggregate production function with capital, K, on the horizontal axis. Why does it have the shape that you have drawn?
What happens if the board of directors of the FOMC and the board of governors whose chairman also happens to be chairman of the FOMC have different goals?
How would your advice to the company be affected by the release of the 2020 Pharmaceutical Development Program?
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