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A firm finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage rates.
If the cost conditions remain constant, what is the monopolistically competitive high price-low output equilibrium in this industry? What are the industry profits?
Explain the determinants of the price elasticity of demand as they apply to the demand of wheat. Use your conclusions about the price of elasticity of demand to explain what they imply about the rev
a. Write the equations for the IS and LM schedules. b. Find the equilibrium values for income (Yo) and the interest rate (Ro)
Calculate the profit-maximizing price-output combination and economic profits for a typical producer if domestic market prices rise by 30 percent following introduction of Bush's protective tariff.
Consider a firm in a perfectly competitive industry. The firm has just built a plant that costs $15,000. Each unit of output requires $5 worth of materials. Each worker costs $3 per hour.
Suppose the two airlines play a one-shot game—that is, they interact only once and never again. What will be the Nash (noncooperative) equilibrium in this one-shot game?
Assuming a simultaneous move, non-repeated interaction game, identify the Nash equilibrium or multiple equilibrium, assuming there is one.
Produce mathematically the reaction curve, i.e. the quantity of production Firm 1 will produce in the Nash equilibrium with the given market demand and costs and taking into account the behavior of&
a. Calculate the equilibrium price and quantity. Now, a $20 unit tax is imposed with the statutory incidence on the sellers: b. Calculate the new equilibrium quantity, the new gross-of-tax price, and
Use the following to demonstrate why a firm producing at the output level where MR=MC will also be able to maximixe its total profit. (ie be at the point where marginal profit is equal to zero)
Derive the LM curve by one of the standard methods used in Macroeconomics. Be sure to label all axis and curves on your graph. Explain in writing to what your derivation brings equilibrium and how i
Then solve for the equilibrium output in the domestic economy given Y*. What is the multiplier effect for this open economy? What happens to Y and the trade balance over time if Y*'s economy grows f
Show the impact on the equilibrium price and quantity that results from (1) an increase in demand (2) an increase in supply (3) an increase in both supply and demand Please provide an example of the r
Please help understanding of Supply and demand analysis and the impact of government regulations for Starbucks. Include one reference.
Problem 1. A ------------ ----------- is a legal maximum price above which a commodity cannot be sold. Problem 2. Cars and gasoline are a good example of-----------(complements, inferior goods, substi
If the economy is at equilibrium, that is, the actual level of output is the equilibrium level. Show your work and illustrate the size of the output gap graphically with a Keynesian cross diagram.
Draw supply and demand diagrams for market A for each of the following. Use these diagrams to determine how each of the following changes in demand and/or supply affect equilibrium price and equilib
Find out the followings 1) Marginal revenue for both, 2) Reaction function for both, 3) Equilibrium output, 4) Equilibrium profits.
a. What's the expected impact on the market equilibrium price for this product? Why? b. Applying the demand determinants explain the causes of this shift.
Assuming the firms act independently, find the dominant strategy for both player (if exist), and the (Nash) equilibrium(a). Briefly, explain your answer. Is this game an example of the prisoner's di
If the perfectly competitive market demand for gym shoes is given by QD = 100 - P and the market supply is given by QS = 10 + 2P, then the equilibrium price and quantity will be
Consists of performing application-oriented exercises wherein the specific economic principles learned in this course are put to practical use. You must translate your ideas into economic analysis u
The government has set price ceiling on "whatever the product is", so that there is a shortage. That industry complains to the government that the ceiling price is far below the equilibrium price.
The idea that markets adjust rapidly enough to eliminate profit opportunities immediately is called________