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S=-500+0.36y
I=8000
a) consumption function
b) equilibrium level of national income
c) multiplier
Question No. 03
The Telecommunications Regulatory Authority (TRA) is the UAE’s independent industry regulator. Since its launch in 1976, Etisalat has held a monopoly in the market. That changed in 2006 with the emergence of du, which was awarded a 20-year concession to operate fixed-line, wireless, internet and international telecoms services. UAE-based telecom operator recently announced that it was launching Virgin Mobile as a new telecom brand within the country. Assuming the trend continues and the government opens the market for more private and foreign players. You are required to–
a). Apply your understanding and concepts to investigate and summarize the major characteristics of the emerging market form in the telecom industry.
b). Describe and analyze the pricing policies that you would expect to find in this industry.
c). Explain the profit maximization strategy of this market form with the help of a suitable graph.
2.1 Money demand in an economy in which no interest is paid on money is Y i P M d 1000 0.4 100 (a) Given that P = 100, Y = 1000, and i = 0.10. Find real money demand, nominal money demand, and velocity. (6) (b)The price level doubles from P =100 to P = 200. Find real money demand, nominal money demand, and velocity
The Telecommunications Regulatory Authority (TRA) is the UAE’s independent industry regulator. Since its launch in 1976, Etisalat has held a monopoly in the market. That changed in 2006 with the emergence of du, which was awarded a 20-year concession to operate fixed-line, wireless, internet and international telecoms services. UAE-based telecom operator recently announced that it was launching Virgin Mobile as a new telecom brand within the country. Assuming the trend continues and the government opens the market for more private and foreign players. You are required to
a). Apply your understanding and concepts to investigate and summarize the major characteristics of the emerging market form in the telecom industry.
b). Describe and analyze the pricing policies that you would expect to find in this industry.
c). Explain the profit maximization strategy of this market form with the help of a suitable graph.
Answer the following:
a). Discuss briefly the supply schedule and the various factors affecting the supply in the market.
b). Assume the demand being perfectly inelastic and supply suddenly doubles due to innovative technique of Illustrate in a well labelled graph, the changes in the equilibrium price, and quantity, and also is it advisable to do so from supplier point of view.
Assess the existing state of the competition for one of certain market in Ethiopia such as
the market for coffee and based on the information collected answer the following questions (5 marks)
a) Characterize the structure of the market in terms of number of sellers, type of the
product, information, barriers to entry, power to affect price, profit potential and
non-price competition.
b) To which market structure does the given market fits/resembles? Why?
c) How does the government policy on the sector affected competition? Is there price
fixing and quota system? Describe.
d) What anti-competitive practice has been observed in the sector?
e) Assuming you are managing one of the firm in the market, how do you maximize
profit given the nature of the market?
(a) Define a monopoly and stage its main features.
(b) Why MUL is called a monopoly? Does it enjoy monopoly in car manufacture?
(c) In what way do customers surfer from monopoly practices of MUL.
(d) What do you suggest to remedy the situation?
Assume a firm engaging in selling its product and promotional activities in monopolistic
competition face short run demand and cost functions as Q = 20-0.5P and TC= 4Q2
-8Q+15,
respectively. Having this information (5 marks)
a) Determine the optimal level of output and price in the short run.
b) Calculate the economic profit (loss) the firm will obtain (incur).
c) Show the economic profit (loss) of the firm in a graphic representation
- Compare and contrast the three methods of measuring the national income statistics.
- With examples discuss the reasons for unfavourable terms of trade in developing countries.
- Discuss the importance of balance of payments (BOP) in macroeconomics.
- Disadvantages of protection in macroeconomics
- Given that a=270,b=0.8,I=150, and G=60.Find the equilibrium level of national income.
The golden rule level of capital accumulation is the steady state with the highest level of consumption.illustrate this statement showing well the economy would move if it were to move to a new steady state
#340153 on Dec 2023