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Suppose there are ten firms in a monopolistically competitive industry, each with an equal share of the market. The market demand is given as Q = 10200 – P. Each firm has a total cost function TC = 51000 + 500q2. Assuming the industry is in long-run equilibrium, what level of output does each firm produce and what price does each firm charge?
From a demand curve, consumer surplus is the area:
Determine the present worth of 5 equal annual deposits of $1,150 at the end of years 1 through 5, followed by 4 equal annual withdrawals of $700 at the end of years 4 through 7. Note that both years 4 and 5 will have a deposit and a withdrawal. Inter..
If nominal wages rose 1.5% and productivity increased 3% in a given year, we should expect:
"There are times when the goals of the FED are in congruence with those of commercial banks and there are times when they are in conflict." Do you agree with the statement? Why or why not? Limit your response to one paragraph.
Elucidate the effect this policy would have on the nation's real risk-free interest rate, nominal interest rates, real and nominal GDP.
What is the difference between hedging and speculating? Give an example of speculating using commodity futures and speculating using financial futures.
Explain the relationship between MR and MC at the profit-maximizing output. Also discuss the relationship between Price and Marginal Cost and price elasticity of demand. Is this level of output economically efficient?
Suppose the market for eggs is in equilibrium at a price of $2 per dozen eggs. If the government decides to enact a new price floor at $1.50 per dozen eggs, what outcome does economic theory predict will occur?
The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico whose purpose is to eliminate tariffs between the countries and promote all aspects of international trade.
Consider a box with width W, length L, and height H. Suppose you have to construct a box with the following constraint: W+L+H equal or less than 30. Suppose W has to be 12. What is maximizing volume of box? What should L and H be?
The purchase price of a natural? gas-fired commercial boiler? (capacity X) was $175,000 eight years ago. Another boiler of the same basic? design, except with capacity 1.46?X, is currently being considered for purchase. If the cost index was 162 for ..
when the state cuts its rate by 4 cents an hour. Explain how the fall in the average weekly wage and the minimum wage will influence aggregate supply.
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