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At the profit-maximizing price and quantity, calculate the price elasticity of demand for roses. Is Shelley pricing on the inelastic portion of the demand curve? Explain why or why not.
Problem: Cournot and Bertrand Equilibria and its relation to tough and soft Commitments.
Suppose that the federal reserve wishes to keep nominal interest rate at a target level of 5%. Draw a money supply and demand diagram in which the current equilibrium interest rate is 5%. Explain ho
Suppose the economy's short-run equilibrium point is to the left of the National Real GDP. Which of the following is true?
Problem: Please provide a economic definition for: 1. Inflationary gap. 2. Marginal propentsity to save 3. shortage 4. ceteris paribus 5. nominal income 6. imtermediate food 7. purchasing power 8. law
Expectation of lower future prices is a ___________. a. rightward shifter of AD b. eftward shifter of AD c. reason for moving up along AD d. reason for moving down along AD
What conditions must hold for a firm to be able to practice price discrimination? How are consumers affected by price discrimination? Elaborate about how consumers are affected.
Question 1. Beginning at A if the manufacturer increases labor by 1 unit and decreases capital by 1 unit, what will happen to cost and output?
Suppose that the government decides to guarantee an above-market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the foll
Suppose the government imposes a price ceiling of 10 dollars. Determine the short run impact of this price ceiling on the following variables
A firm is in the short run competitive equilibrium. The price of a substitute item increases a. The product price will rise b. New firms wil lenter the market c. Firms will begin earning economic prof
One method of measuring the extent of a firm's market power is: a. the Lerner index. b. price elasticity of demand for the firm's product. c. income elasticity of demand for the firm's product d. both
Suppose that a firm has $100 in fixed costs and has constant marginal costs of $10. a) Graph this firm's MC, AC, AFC, and AVC curves. b) What is the minimum efficient scale of production for this firm
Exhibit shows the short-run demand and cost conditions for a firm under Monopolistic Competition. Replicate the graph. Label the curves and axis.
If they charge the same price in each market, what should be the quantity sold in each market, equilibrium price, total profit?
Question 1: Determine the market price of the capital goods and the market rate of interest on loans. Question 2: How will the market price of the capital good and the market interest rate vary with
Task: Determine the Market Structure. Exhibit depicts indicates the demand and cost conditions facing a firm. Question 1: Label all the curves and axis on the graph. Is this firm a price-taker or a
How much revenue is XYZ making? What are the costs? What is the profit? Will the company stay open in the short run? Provide intuition for your answer. Show on the graph and explain what will
1) Explain the incentives of each firm for introducing new models in this market. Be sure to point out any outcomes with a "collusive" structure. 2) Which outcomes constitute a Nash Equilibrium?&nbs
Problem: The question asked that suppose that the consumption function in a particular economy is given by the following table:
Suppose a monopolist faces the market demand function P = a - bQ. Its marginal cost is given by MC = c + eQ. Assume that a > c and 2b + e > O. a) Derive an expression for the monopolist's opti
Suppose that American chooses to carry 660 passengers per day (i.e., QA=660). What is United’s profit maximizing quantity of passengers? Suppose American carries 500 passengers per day. What i
A) Describe the Nash equilibrium (or equilibria) for this sequential-move game. Explain your reasoning. B) Identify a subgame perfect Nash equilibrium for this game Explain your reasoning.
Taxes can obviously affect firms' costs. Explain how each of the following taxes would affect total, average, and marginal cost. Be sure to consider whether the tax would have a different effect dep