suppose that tge demand curve facing OPEC is given by P=120-2Q and that ecah members cpst of producing oil AC=MC =$20.Find the cartels profit maximizing total output and price
The demand curve for a public park for two consumers who represent society is given by:
𝑃 = 150 − 𝑄𝐷1, 𝑃 = 250 − 𝑄𝐷2
Graph the two demand curves and show the marginal social benefit curve for this public
park. If the marginal cost of providing the park was €240, what would the optimum
provision of this park be? Explain why any quantity above or below this amount would
represent a less than efficient allocation.
A multinational company is looking to raise USD 50000000 for its expansion strategy across different countries, where they are only present as of now. Based on their financial capital structure, the HQ decides to go for funding by issuing bonds in the international market. Describe the two broad categories of international bond markets. Briefly explain
the various types of bond instruments that the MNC can consider issuing in the international bond market.
Briefly explain multicollinearity and its impact on the standard error of an OLS estimator
Two goods have a cross-price elasticity of demand of +1.2 (a) would you describe the
goods as substitutes or complements? (b) If the price of one of the goods rises by 5 per
cent, what will happen to the demand for the other good, holding other factors constant?
1. Suppose that Yt follows the Moving Average process of order 1 (MA(1)) model Yt=ϵt−θϵt−1, where ϵt is i.i.d. with E(ϵt)=0 and Var(ϵt)=σϵ2 .
a) Compute the mean and variance of Yt
b) Compute the first two autocovariances of Yt
c) Compute the first two autocorrelations of Yt
. Draw demand and supply curves and explain what will happen in each scenario.
Eskom implements load shedding to reduce the supply of electricity and lighten the load on the system. What will the effect of a reduction in the supply of electricity be on the market for electricity?
Eskom is facing increasing debt of close to R500 billion, and Accountants will comment that they are not making a normal profit. As an economist, you could argue that Eskom is also not making an economic profit. Elaborate on the difference between accounting and economic profit and provide suggestions of how an Eskom can ensure an economic and accounting profit
How can financial and fiscal policy help promote development
Should multinational corporations be encouraged to invest in low- and middle-income countries,
such as through investment promotion programs, and if so, under what conditions?