Macroeconomics Answers

Explain why a monopolist can increase profits by practicing price discrimination compared with using a single price to maximize profits? What are the different kinds of price discrimination? What are the necessary conditions required for a monopolist to be able to practice each kind? Provide one example of each of the different types of price discrimination. You may use graphs to illustrate

arguments in favour of privitisation include:

Explain why the short run ATC is U shaped. Explain why the long run ATC is also U shaped. How are the two curves different?

In macroeconomics, a central bank can increase or decrease the money supply in an economy through open market operations - buy or sell securities to take money out or add money into the system. Generally central banks try to grow the money supply over time, to grow it with the growing economy to keep prices stable, and changing interest rates (discount rate, interest rate on reserves) only affects short term fluctuations in money supply. My question is this - is the only way a central bank can achieve more permanent increases in money supply (i.e. grow it with the economy) is to buy more and more assets and therefore continually increase its assets on its balance sheet? Or is there another way to increase money supply that I'm missing?

A firm produces the following units of output, Q, by hiring a fixed quantity of capital, K, and labour, L, as follows:

L: 8, 16, 24, 32, 40, 48, 56, 64, 72, 80

Q: 16, 36, 65, 97, 137, 177, 209. 233, 249, 257

a. Determine the average and marginal products of labour?

b. Provide rough graphs of the total product, average product and marginal product curves and explain why they behave in the way they do. Be sure to label your axes correctly?

Explain how the firm would use the marginal product of labour to determine the profit maximizing quantity of labour, which the firm would hire?

impact of recession or depression in any economy research paper

what can government policies do to raise productivity and living standard?

Let Ct denote the individual's consumption of nondurables on date t, and let Dt be the stock of durable goods the consumer owns at date t. A stock of durables yields its owner a proportional service flow each period it owned. Income process is deterministic. The representative consumer has a perfect foresight about his or her income process and maximizes.
U1= Σβt[θlogCt + (1 − θ)logDt] (∞　t=1). subject to Dt = (1−δ)Dt−1 +X and At = (1+r)(At−1 +Yt −Xt −Ct)
where A0 and D0 is initially given. Here At is a financial wealth at the end of date t, Yt is date t income and r is a market interest.
1) What are the choice variables in this maximization problem? Derive first order conditions.
2)Using FOC, show that
θ/Ct=(1-θ)/Dt+β(1−δ)(1-θ)/Dt+1+β^2(1−δ)^2(1-θ)/Dt+2+・・・ and interpret it.
3)Using FOC, show that
(1-θ)Ct/θDt=1-(1−δ)/(1+r)
4)Assume β(1+r)=1 and let ι ≡ 1-(1−δ)/(1+r), show that the optimal level of C1 and D1 are given by
C1=θr/(1+r)[(1+r)A0+(1−δ)D0+Σ(1/(1+r))^t-1Yt]
D1=(1-θ)r/(1+r)ι["]