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Suppose a monopolist operated in an industry where the market demand is perfectly elastic (with inverse demand given by P = 30 and its cost function is T C = 100 + Q + Q^2 . calculate profit maximising P and Q. Would this be any different if the industry is competitive? [3 marks]}
List three strategies that can be used by firms to enhance profits in an environment of extreme price competition.
Assume a competitive market in which a chemical plant emits harmful pollutants into the air. If the firm only considers the marginal cost of production will it produce more than the efficient level of output?
the government is considering undertaking one of the four projects a1 a2 a3 a4. these projects are mutually exclusive
Two of the major macroeconomic measures that tell us how 'healthy' the economy is are "the unemployment Rate" and "the rate of Inflation".
You need to hire some new employees to staff your startup venture. You know that potential employees are distributed throughout the population as follows
Officially, such activities as dealing in drugs are not considered production. Why not?
Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets.
In 1999, India did not have shopping malls. It now has more than 100 malls. explains this rapid development.
If he deposits %5000 each year, how much will his daughter be able to withdraw each year starting in year 18 and continuing through year 22? Assume the account earns interest at 8% a year.
Difference in FDI inflows into the two countries
Describe the Law of Market Forces - The federal government subsidizes the production of health care services.
How would an increase in the world price of oil affect the amount of frictional unemployment. Is this unemployment undesirable. What public policies might affect the amount of unemployment caused by this price change.
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