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"If an unregulated monopolist is obtaining only a normal profit in the long run, it must not be operating at the lowest point on its long-run average cost curve." Do you agree? Why?
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
Suppose that a market is described by the following supply and demand equations: Qs = 3P, Qd =400?P Solve for the equilibrium price and the equilibrium quantity.
Firm Z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. Its cost function is C=50+4Q+2Q^2. The associated marginal cost is MC=4+4Q, and the point of minimum average cost ..
What is the equilibrium price in this market and how many cups of coffee are traded in equilibrium
From the scenario, assuming Katrina’s Candies is operating in the monopolistically competitive market structure and faces the following weekly demand and short-run cost functions:
What is the level of saving and consumption in the U.S. today? As a consumer should you be saving or consuming? Is this something the government should try and influence?
Assume that the consumption of schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Reca..
A monopolist faces the price equation: P=1,000-0.5Q and total cost: C=50,000 +100Q + .4Q^2. A. Determine the price and output that maximize total revenue, and the level of profit. B. Determine the price and output that maximize profit and the leve..
Constrained optimisation model
In 2006, Willem de Kooning’s abstract painting Woman III sold for $137.5 million. Portray this sale in a demand and supply diagram and comment on the elasticity of supply. Comedian George Carlin once mused, “If a painting can be forged well enough to..
What factors influence your decisions to work? Are there factors besides income that influence your decision to work? If you were to win a lottery prize of $100,000 per year, would you continue to work?
In the case of a natural monopoly where cost conditions lead to a sole supplier, regulation is used to ensure that, The lorenz curve cannot be used to show
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