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An industry contains two ?rms, one whose cost function is C(q1) = 30q1 and another whose cost function is C(q2) = q2 2. The inverse demand function for the ?rms’ output is P = 120 − Q, where Q is the total output. What are the ?rms’ outputs in a Nash equilibrium of Cournot’s model?
Write out the supply of loans formula and use it to show what will happen to the supply of loans if private saving rises, then complete this sentence: What effect will the change in part “a” have on the real interest rate? Draw a graph showing the lo..
Graph the Bens consumption function also find their households marginal propensity to consume.
If a 10 percent fall in the price of beef increases the quantity of beef demanded by 20 percent and decreases the quantity of chicken demanded by 15 percent, calculate the cross elasticity of demand between beef and chicken. What can you conclude abo..
Venezuela had considerable capital outflows after election of Hugo Chavez. If Venezuela had fixed exchange rates, determine what effect would these flows have had on Venezuela's overall balance and value of the Bolivar
If the required reserve ratio ia 10 percent, up to illustrate what amount could checking account deposits in the banking system as a whole drop.
When the? government's outlays equal its tax? revenue, then the budget. When government outlays exceed tax? revenue, the situation is called a budget
Describe perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.
Draw a graph (hand-drawn is acceptable) that illustrates the demand and supply of a perfectly competitive industry. Indicate the following in your graph: the equilibrium price; the equilibrium quantity; the producer surplus if the industry is a monop..
The original cost of a certain asset is $1,592. Annual maintenance costs are projected to be $464, with periodic maintenance costs of 983 every 10 years, over an indefinite period of time. The interest rate is 2%. What is the capitalized cost?
For each of the following, identify whether the statement is true, false or uncertain and justify your answer. If everyone has the same marginal rate of substitution, then the allocation is Pareto efficient. b) If a policy change increases social wel..
A production function establishes the relationship between: Which of the following inputs can be changed in the short run? Which of the following statements is true of the long run?
The U.S. Tax Code is 12,000 pages long. Do you think we need that many pages to collect revenue for Uncle Sam? Do you think that you should need an expert to figure how much you owe in taxes? The folks in Washington who write the tax laws have to hir..
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