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A monopolist has an inverse demand curve given by p(y) = 12 - y and a cost curve given by c(y) = y2.
(a) What will be its profit maximizing level of output?
(b) Suppose the government decides to put a tax on this monopolist so that each unit it sells has to pay the government $2. What will be its output under this form of taxation?
(c) Suppose now that the government decides to put a lump sum tax of $10 on the profits of this monopolist. What will be its output?
It will provide benefits of $4000 at the end of Year 1, $3,500 at the end of Year 2, and $3,500 at the end of Year 3. If the discount rate is 6%, will this project be approved using cost-benefit analysis?
Calculate Pete's marginal and average cost schedules. What are Pete's profit-maximizing output and price? What is Pete's economic profit? Explain your answer.
Why do five pillars of Islam make it an ideal religion for a nomadic people. Why did African rivers turn out to be a disappointment to European colonial powers.
Why would you expect the velocity of circulation of a monetary aggregate such as M1 or M2 to rise during periods of high interest rates and to decline during periods of low interest rates?
Using an aggregate supply/aggregate demand model chart the short run effects of decreasing government spending (assuming you began in a short run and long run equilibrium)
(a) Recommend some U.S. fiscal policy change in business taxes or government spending that would reduce the U.S. government’s budget deficit and also help improve the U.S. economy? Explain. (b) Would reducing the federal budget deficit also reduce th..
Calculate the monetary base. What is the value of the money supply (M1) What factors determine the level of excess reserves in the system? Calculate the money multiplier. What would happen to the level of deposits in the economy if the Fed bought $10..
Calculate the consumer surplus, producer surplus, government revenue and deadweight loss for taxes of $4, $8, $12 and $16 per unit sold. What tax maximizes government revenue?
What is the impact on the market for abdominal surgery usin this new technology?
An individual’s demand for physician office visits per year is Q = 10 (1/20)P, where P is the price of an office visit. The marginal cost of producing an office visit is $120. (a) Individuals pay full price for obtaining medical services, how many of..
A small college has space for a maximum of 1,000 students. The college can identify 500 of its students who are willing to pay $20,000 per year and 500 students who are willing to pay $10,000 per year. If the college charges all students the same tut..
assignment is to be a minimum of five pages long and in APA format. A good variety of objective, high quality, present sources need to be used.
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