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The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing and able to pay for this outputis $40 per unit. If it priduces this output, the firms average total cost is $43 per unit, and its average fixed cost is $8 per unit. What is this producers profit-maximizing(loss-minimizing) output level and what are the firms economic profits (or economic-losses)?
Illustrate what is the number of kilowatt hours of electricity produced and what is the price that the company will charge.
Think IS LM BP model of an open economy with sticky price levels in local currency, perfect asset substitutability, perfect capital mobility and static expectations.
Discuss and explain the current tax treatment of capital gains under personal income tax. Describe why do some economists argue that reduction in rate of taxation and capital gains can actually raise tax revenue collected from such gains?
Utilize the information to predict the yearly number of VCR's sold under the following conditions.
Illustrate what are the different types of exchange rate, their advantages and disadvantages.
"Too Big to Fail" is title of a book and a movie by HBO. It refers to the bailout of the major financial institutions that began in 2008, and at the time there was concern,
The minimum wage is used by governments as poverty fighting measure. The use of such means of creating equity among the masses does not always result in desired outcome.
Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
Will the homeowner retrofit also which insurance policy will the homeowner buy. Explain will the insurance company make a profit (on average) given the homeowners choice.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
Government play in affecting the supply also demand of a key commodity such as gasoline or electricity?
Illustrate what are the arguments in favor of trade restrictions, and what are the counterarguments. According to most economists, do any of these arguments really justify trade restrictions.
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