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1-) Is a monopolist subject to any competitive pressures? Explain. Would an unregulated monopolist have an incentive to operate and produce efficiently? why or why not?
2-)Are the following statements both correct? Are they inconsistent with each other? Explain.a. "Firms will hire a resource only if they can make money by doing so."
b. "In a market economy, each resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices."
Explain how is it that monetary policy, such as open market operations.
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input?
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
The mayor also considers issuing pollution permits and establishing a market for these permits. Plant A is given an initial endowment of permits such that it must engage in 60 units of pollution abatement (reduction). Plant B is given an initial e..
By early 2008, most economists believed we were heading towards recession. Congress and the President passed an Economic Stimulus Package (Expansionary Fiscal Policy) and the Federal Reserve cut interest rates (Expansionary Monetary Policy). Expla..
Discuss and explain the concept of the macro economy. Determine the major performance goals that we set for the economy, and how do we measure the performance?
Draw a graph of the UK labour market that shows the demand for labour, the supply of labour, and the real wage rate in 1973 and 2003. Draw a graph of the UK production function in 1973 and 2003. Make sure your graph shows potential GDP in both year..
Does that mean that, by using the Phillips curve, is the unemployment rate zero when the rate of inflation is neither increasing nor decreasing?
Fiscal policy also decrease the dollar like monetary policy.
Construct the statement of stockholders' equity for December 31, 2012. No common stock was issued during 2012. Write out all your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest share ..
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
Assume both the 1-year and 11-year spot rates unexpectedly shift downward by 2 percent. Illustrate what is the price of a forward contract otherwise identical to yours.
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