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The demand for a certain good is given by the following equation:
D(p) = 10 - p.
The technology that can be used to produce this good is described by the cost function:
c(y) = 2y.
Compute the monopolist’s profits and indicate them in your graph.
Suppose a firm has total cost function given by TC(Q)=10Q+70. What are its marginal costs when producing 10 units of output?
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Assume an economy in long and short run equilibrium in the Aggregate Deamnd/Aggregate Supply model. There is a sudden drop in consumer confidence in the solvency of pension funds. Explain, with support from a graph, how this is shown in the AD/AS ..
ABC Corporation is a small Canadian company that sells staples in Canada, which is a very competitive market. The staples can be classified as a standard commodity, with stores viewing staples as identical to those supplied through other companies.
Graph the q = 100 isoquant. Indicate the points on that isoquant de.ned in part a and part b. What is the RTS along this isoquant? Explain why the RTS is the same at every point on the isoquant. So i know that my labor for part A is 80, labor for ..
ssume that a hypothetical economy with an MPC of 0.75is experiencing a severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion How large a tax cut would be needed to achieve th..
The cost function at a car manufacturing firm estimated as TC = 250 + 150Q - 2.5Q^2 + 0.5^3. Derive the MC and AC functions; What are TC amd AC at an output of 123 units? What is the value when AC is at a minimum?
What happens to Market Equilibrium Price (MEP) if Supply decreases as Demand increases?c. What happens to Market Equilibrium Quantity (MEQ) after there has been an increase in Supply followed by a decrease in Demand which is followed by another in..
Elucidate how have these policies affected the prices of the product the industry produces?
The labor market is traditionally protected by union in many industries such as automobile and K-12 education (public schools) What are the pros and cons of unionizing a workforce What about minimum wage rate What are the pros and cons
Does the fact that your bank keeps only a fraction of your account balance in reserve make you uncomfortable? Why do not people rush to bank and retrieve their money?
What is the nominal exchange rate between the two countries and consumers become permanently more concerned about the future and decide to consume a smaller portion of their income.
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