Economics Answers

A monopolist’s demand curve is given by P = 100 – 2q.
(a) Find his marginal revenue function.
(b) At what price is marginal revenue zero

How do you reconcile the difference in the shape of the curve in the short run and the long run?

How do you reconcile the dif
ference in the shape of the
curve in the short run and the long run

Find all the Nash equilibrium of the following game:
Player1
Player 2
Left Right
Up (5,4) (1,3)
Down (4,1) (2,2

Assume that there are four firms supplying a homogenous product.They have identical cost function given by C(Q)=40Q.If the demand curve for the insdustry is given by U=100-Q,find the equlibrium insdutry output if the producers are cournot copetitors.What would be the result market price?What are the profits of each firm?

The full effect of fiscal policy may not be realized if not matched with changes in monetary policy, explain using the IS/LM model

Using appropriate model, illustrate the effect of an expansionary fiscal policy in an open economy operating in free exchange rate regime .Assume perfect capital mobility. What is the effect if the government uses monetary policy alternatively?

explain why perfectly competitive firms cannot earn positive economic profits in the long run?

To produce a recorded CD,q=1,the firm uses one blank disk,D=1,and the services of a recording machine,M=1,for one hour.


1)Draw an isoquant for this production process.

2)explain the reason for its shape.

If there are only two goods, is it possible to illustrate a consumer’s preferences over them with an indifference map? Draw an indifference map with three indifference curves. What are a few standard assumptions about what an indifference map can and cannot look like? What are those assumptions and what reasoning lie behind them?