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Assume a monopolist faces a market demand curve P ?= 100 -? 2Q and has the short-run total cost function C= 640+ 20Q. What is the profit-maximizing level of output? What are profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that represents deadweight loss on the graph.
above, what would price and output be if the firm priced at socially efficient (competitive) levels? What is the magnitude of the deadweight loss caused by monopoly pricing?
In your opinion, are you better off saving money or spending money? Why? Please explain? Then take the question from a more macroeconomic perspective...does your spending or saving make the economy as a whole better off (and thus indirectly you)? How..
You are the father or mother of a family of four (kids ages 13 and 15) planning a weekend camping trip. Develop a responsibility matrix for the work that needs to be done prior to starting your trip.
Compare and contrast pure discount bonds with coupon bonds and provide at least one example of such government or corporate bonds that can be bought and sold by investors. Describe the way interest rates are determined for these bonds by using the ap..
What are the short- and long-term economic benefits and cost associated with our current high federal government budget deficits?
Consider a 30 year $10,000 (risk-free) bond with annual coupon rate of 4.25%. What is the annual coupon payment? If the yield to maturity on the bond is 4%, what must be the market price for the bond? Is the bond selling at a discount of (below) or ..
Can you explain the law of diminishing returns in your own job place. Can you find a counter example.
Craig’s Red Sea Restaurant is the only restaurant in Columbia, South Carolina, that sells Ethiopian food. The demand for Ethiopian food is given by Q = 10,000 - 20P. Craig’s costs are given by TC = 1,000 + 10Q + .05Q2. (A). If Craig behaves like a mo..
Ssuppose which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze as each additional cow has less grass to eat than the previous one.
Suppose the own price elasticity of demand for good X is -0.2, and the price of good X decreases by 10%. We would expect the quantity demanded of good X to:
Draw a graph (hand-drawn is acceptable) that illustrates the demand and supply of a perfectly competitive industry. Indicate the following in your graph: the equilibrium price; the equilibrium quantity; the producer surplus if the industry is a monop..
How do changes affect the equilibrium price and quantity of SUVs if a buoyant stock market makes people more confident about the future. What is the shift in the Supply and Demand Curves and provide a brief explanation of why each change occurs.
What are the advantages and disadvantages of free trade for the United States? Be specific in giving examples of how free trade and off-shore manufacturing helps and/or hurts businesses, workers and consumers in the United States.
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