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Question :
(a) Suppose Firm A is a perfectly competitive firm producing good X and faces the following average revenue and average cost
Average Revenue: P = 10 Average Cost: AC = 4 + 0.6 Q
(i) Find the total cost and marginal cost function
(ii) Calculate the profit maximisation output level and the resulting profit/ loss.
(iii) Calculate market output and market price
(iv) If market demand shift to D = 420 - 2P and Firm A faces an average cost given by AC = 2 + 0.8Q what is the profit maximisation output level and resulting profit /loss for Firm A if AC is unchanged?
(v) What is the resulting output if we were in a LR situation?
Why is it unusual for yields on longer term notes to be lower than yields on shorter term notes? 2pts b) Why would any investor buy the 2 year note (instead of the 1 year) given it
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Which assumption of Classic OLS does this model violate?
Question 1: i) Derive and explain Harberger's (1954) welfare loss estimates of monopolizing a perfectly competitive firm. ii) What are the roles of advertising? Can it lead
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What is Nancy’s lifetime income as a function of her level of schooling, S? 2. What is Nancy’s lifetime income if she gets no schooling? What is it if she goes to school for all 60
summary of general equilibrium
Rework figure 1 assuming a closed economy
a reduction in investment spending would lead to
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