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A risk neutral monopoly must set output before it knows for sure the market price. There is a 50% chance the firm’s demand curve will be P=20-Q and there is a 50% chance it will be P=40-Q. The marginal cost of the firm is MC=Q. The expected profit-maximizing quantity is:
A. 5 B. 10 C. 15 D. 20
Suppose the economy is in a long-run equilibrium, as shown in the following graph. Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run.
What factors determine the sensitivity of net exports to the interest rate? Consider the cases where net exports are very sensitive to the interest rate and where they are very insensitive. Compare the effect that an increase in the money supply has ..
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What is the equilibrium price and quantity of apartment rentals in Lafayette? Suppose the government imposes a price ceiling of $150. What is the impact on the equilibrium outcome? Does this price ceiling necessarily increase consumer surplus? Explai..
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q1. if the demand curve is qp 20-2p and the marginal cost is constant at 8 what is the profit maximizing monopoly
If as price decreases by 10 percent, total revenue increases by 5 percent, what is true about demand? In 2014, India substantially increased its import tariff on sugarcane. Which of the following would the model of supply and demand not predict?
Compare also contrast McDonald's strategies in China with those of Wal-Mart in Mexico.
When tolls on the Dulles Airport Greenway were reduced from $1.75 to $1.00, traffic increased from 10,000 to 26,000 trips a day. Assuming all changes in quantity were due to the change in price, what is the price elasticity of demand for the Dulles A..
he chinese furniture manufacturers produce high quality early amerian furniture and successfully export large quantities of the furniture to the United States.
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908 and how does the taxation change if the income was $220,874?
Explain how scarcity affects the following decision-makers: The president of the United States A business executive A city manager The mother of a baby.
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