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Question 1:
(a) Discuss the adjustment to an increase in demand for a perfectly competitive market in the:
(i) Short run (ii) Long run
(b) How would the same industry change if it were organized first as a competitive industry then by a multi-plant monopolist?
Question 2:
(a) Define, explain and illustrate the concept of opportunity cost?
(b) "Consumers and producers pay equal amount of a per-unit tax." Discuss
Under specified assumptions, derive the square-root formula of the Baumol-Tobin's inventory model of transactions demand for money and briefly describe the effect of a one period i
1. Suppose the wage rate is w = 1. An agent is working 6 hours per day and consumes 5 units of goods per day. Suppose that the agent claims to be indifferent between his current
International economic relations also vary, in large measure, on monetary issues. You are unlikely to accept the Turkish Lire in payment for your wages in this country, easily bec
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a curve on a graph shows the relationship between apartment rent in a town and the quantitiy of apartments that people want at each rent. A new industry enters the town and the pop
advantages and disadvantages
How base case NPV analysis is applied in financial risk management
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COMBINED FINANCES OF UNION AND STATES: Taxes on goods and services are levied in India in various forms and at different levels of Government, Centre, states, and local bodies
In this part, use the results for market demand for short-run and long run market supply of good x1 obtained in parts one and two. When a change (e.g. income or taxes) is introduce
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