Question

Suppose that a monopolist’s market demand is given by P = 100 – 2Q and that marginal cost is given by MC = Q/2.
a) Calculate the profit-maximizing monopoly price and quantity.
b) Calculate the price and quantity

Question

A computer-products retailer purchases laser printers from a manufacturer at a price of $500 per printer. During the year the retailer will try to sell the printers at a price higher than $500 but may not be able to sell

Question

The world is made; up of only two large countries: Eastland and Westland. Westland is running a large current account deficit and often appeals to Eastland for in reducing this current account deficit. Currently, the government of Eastland purchases

Question

Do people respond to market incentives? Consider the following policies. How do you expect people to respond to them? What environmental impacts might arise?
(a) Many places require that “brownfields”-places that previously received contamination, usually from industrial use-be cleaned

Question

Two mutually exclusive projects, A and B, require the same up-front investment in the first year. Project A generates positive net cash flows in years 2 through 5 and nothing after that. Project B generates nothing in years 2 through

Question

You have just purchased a Kia with a $20,000 price tag. The offers to let you pay for your car in five equal annual installments, with the first payment due in a year.
a. If the

Question

Identify whether each of the following events poses an adverse selection problem or a moral hazard problem in financial markets.
a. A manager of a savings and loan association responds to reports of a likely increase in federal deposit

Question

1. List the factors that can shift a perfectly competitive firm’s labor demand curve.
2. Explain why the market demand curve is not the horizontal summation of the firms’ demand curves for labor.
3. List the determinants of

Question

The poorest countries in the world have a per capita income of about $600 today. We can reasonably assume that it is nearly impossible to live on an income below half this level (below $300). Per capita income in the

Question

A discussion of labor unions usually evoke strong feelings. Some people argue vigorously against labor unions; others argue with equal vigor for them. Some people see labor unions as the reason workers in this country enjoy as high a standard