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An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's monthly demand for phone calls is Q1 = 2,800 - 200p (with p measured in cents) and Firm 2's is Q2 =5,000 - 100p. The marginal cost of providing a phone call is 6 cents. Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
Why is capital relative scarce in low-income developing countries and relatively abundant in high income countries? In brief describe the capital market institutions in a developing country that you are familiar with.
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
Evaluate the following: The laws of supply and demand cannot apply to the labor market because labor is not a commodity to be bought and sold like machines.
Using the IS/LM model, demonstrate the effect of each of the following changes.
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
Two identical firms face linear demand. Market demand is given by P=30-Q.Solve for Stakelberg equilibrium prices and outputs.
From the regression output, estimate the demand function when income is $40,000 and price is $2 per gallon. Explain the result in terms of R-square, T-test, F-statistic, and signs of each X variables.
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
Essay on Market imperfection associated with negative externalities.
If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion, we can conclude that the MPC is:
Maggie's utility function is and her income is $5000. Then her MRS at generic bundle (x1, x2) is 50-0.25x1. Commodity 2 is a composite good, and hence its price is unity.
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