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A commodity market is characterized by the following equations:
Demand: P=70-(QD)
Supply: P=10+2(QS)
What is the value of the world net loss from the cartel (deadweight loss)?
Illustrate it graphically.
Instead of maximizing profit, the cartel wants to maximize revenue or market share, at what price should it sell its product?
Which of the following is one of the differences between the Articles of Confederation and the new Constitution created during the Constitutional Convention in 1787?
What technology available to produce your product suddenly improves. You should note whether the scenario indicates a shift of the curve or movement along the curve. You are a supplier of widgets.
Illustrate what will be the price of this new drink in the long run, assuming the industry is a Cournot duopoly.
Out of the people who wear seat belts, northeast has 148. Out of the people who don't wear seat belts, northeast has 52. A total of 858 wear seatbelts in the United States. Illustrate what is the probability of seat belt usage by region of the cou..
If the price of motel room increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel room has?
Recall leisure time in our model of the representative consumer is intended to capture any time spent not working in the market, including production at home such as yard work and caring for children. Determine the effects of the day care program on ..
In an open economy, the condition for equilibrium in the goods market is different from the condition for a balanced trade account. Explain using words or equations (or both if you wish). Draw a diagram that illustrates a situation where the goods ma..
Consider the case of extremity selection, where both the most skilled and the least skilled from a source country choose to migrate. In the Roy Model, what must the graph of the return to skill on the two countries look like to generate this scenario..
Suppose the government spends $500 million on a project that has absolutely no value to the country. If the marginal propensity to save in the economy is equal to 0.25, the Keynesian model predicts that this project will result in a $2000 million inc..
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, Illustrate what was the real interest rate you paid.
Suppose you manage a wine cellar with fixed storage space and you have to choose when to sell each bottle of wine. The value of each bottle V(t) is increasing over time at a decreasing rate: V' (t) > 0 and V'' (t)
Please explain the difference between the collusive and competitive oligopoly models and explain the role that the number of firms and barriers to entry play in determining how real-world oligopolistic industries behave.
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