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Consider a monopolist in a market with linear inverse demand p(q) = 4 minus q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price.
Illustrate what is expected interest rate that will be charged by a bank that cannot exactly distinguish between two types but knows probabilities of each type.
If the price above the equilibrium level, would you predict excess supply or excess demand? If the price is below the equilibrium level, would you predict a shortage or a surplus? Why?
Using the supply and demand analysis of the market for reserves, indicate what happen to the federal funds rate under the following situations: The Treasury has just paid a large bill to defense contractors and as a result its deposits with the Fed f..
q. use the subsequent demand schedule to determine total also marginal revenues for each possible level of
Using carefully labelled demand and supply diagrams, show the impacts on equilibrium price and quantity in the following situations: New cars are normal goods. What will happen to the equilibrium price and quantity of new cars if the price of gasolin..
What would happen to world welfare if the U.S. paid exporters a subsidy of $5 for every pair of blue jeans they sold to Canada, but Canada charged a $5 countervailing duty on every pair imported into Canada?
Draw and show with boxes and appropriate labeling who bears which portion of taxes. When does a price ceiling become binding and what does it create? Show in the diagram.
Illustrate what direction wills each of the subsequent occurrences shift the consumption also saving schedules, other things equal.
Specify the main economic (not political) drawback of economic integrations among nations? Explain (do so in no more than 40 words).
What are transnational corporations and how are they different from other business firms Why have the MNCs become more important in international political economy during the past three decades What kind of economic and political impacts do they have..
Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Write the equation for the medical isocost of AFC.
Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
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