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A monopolist faces the following information:
The market demand: Q = 200 – 2P
The cost structure: TC = 300 + 20 Q
What is the profit-maximizing price-output combination and what are the levels of profits and consumer surplus at that point?
How would your answer to part a. change if the firm is forced into marginal cost pricing?
What is the dead-weight-loss?
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
What is a duty that managers owe to the corporation? Discuss an example of a positive method that the manager may uphold that duty. Provide an example of an act or omission that depicts a manager violating the duty.
Does our baseline model without search produce a multiplier? What assumptions must be made in the model with search to make the mul- tiplier match the larger estimates in the data. What types of changes to our current model would make the multiplier ..
The government finds that a lot of employers are prejudiced, and discriminate against foreign workers. The secretary of labor offers the President three options to deal with this problem: Arrest all employers who are hiring foreign workers at less th..
On September 18, 2003, hurricane Isabel struck the North Carolina Coast, causing extensive damage. For several days prior to reaching land the National Hurricane Center had been predicting the hurricane would come on shore between Cape Fear, North Ca..
what should you do when the manager of a perfectly competitive firm whose short run cost is TC = 100 + 160Q + 3Q2. If the market price is $196.
show and explain the equation of exchange based upon the velocity of money. Eventually this model was used to develop a demand for money theory. Why was this model not a good predictor of the demand for money?
they both can earn 10$ an hour they both have non-labor income of 300$ per week and they have 110 hours per week of non sleeping time. Who would works the most hours also how much do each of them make per week
Suppose one insurance company decided to charge teenagers and adults the same premium based in the average risk of an accident among both groups.
Define the terms potential output, expansionary gap, and contractionary gap. Why might actual output exceed potential output (an expansionary gap)? Why might actual output be lower than potential output (a contractionary gap)?
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate of return per year? the real rate of return per year?
As noted in the text, the overwhelming majority of the world's countries have an economic system that is somewhere between the extremes of "laissez faire capitalism" and a "command economy." However, within this majority of countries, there remains a..
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