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Suppose that the demand curve facing OPEC is given by P=120-2Q and that each members coat of producing oil is AC=MC=$20. Find the cartels profit maximizing total output and price.
If instead of keeping to this output,all members overproduced their quotas by 20 percent,what would be the effect on OPEC's total profit?
"The Green Company produces chemicals in a perfectly competitive market. The current market price is $40;the firms total cost is C=100+4Q-Q².
a.Determine the firms profit maximizing output.More generally, write down the equation for the firms suppy curve in terms of price P.
b. Complying with more stringent environmental regulations increases the firms fixed cost from 100 to 144.Would this affect the firms output? Its supply curve?4
c.How would the increase in fixed costs affect the markets long run equilibrium price? The number of firms?(Assume that Greens costs are typical in the market.)
Compare and contrast marginal rate of substitution and marginal rate
technical substitution.
Demand Curve: There is typhoon. What is the effect to the umbrella?
Price elasticity of supply by point elasticity method when energy sector is in equilibrium
Q.2 why do we call mechanisms such as such as proportional income tax and welfare system automatic stabilizers? Choose any one of them and explain carefully how and why it affects fluctuations in output
XTC Ltd has total costs of $45,000 and it is currently producing 5,000 units. It has examined its cost structure and has found that its variable costs share a linear relationship with output. Fixed costs are $10,000. The market price is $10.
(a) Determine the MC, AVC and ATC functions (write down the equation) for the firm.
(b) Determine the current profit of the company.
c. Determine the degree of operating leverage at current output
Although not explicitly mentioned in Chapter 20, John Maynard Keynes is considered a foundational source in the understanding of macroeconomics. After performing research outside the textbook, please explain in three well-structured paragraphs the basic principles of the New Keynesian Economics and how it addresses perceived limitations to classical Keynesian theory.
Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by:
q = 60 − (1/2) p, where q is quantity sold per week.
The firm’s marginal cost curve is given by: MC = 60.
1. How much will the firm produce in the short run? 2. What price will it charge?
In addition to providing the quantitative answers for the question, please also describe the approach you used to arrive at your conclusions.
Explain the process of credit creation in the economy and indicate the relationship between the reserve ratio and money multiplier
