A monopolist can produce at a constant average and marginal cost of ATC = MC = $5. It faces a market demand curve given by Q = 53 - P.

5. Suppose there are N firms in the industry, all with the same constant MC = $5. Find the Cournot equilibrium. How much will each firm produce, what will be the market price, and how much profit will each firm earn? Also show that as N becomes large, the market price approaches the price that would prevail under perfect competition. (Hint: your answers will be functions of N)

1. In 1920, when Presidential candidate Warren G Harding called for "return to normalcy" he was advocating
increased support for Progressive Era programs and the League of Nations
increased farm production and an emphasis on the rural lifestyle
reduced international involvement and less government regulation of business
reduced racial segregation and the elimination of discrimination against women

2. After World War I, most Americans wanted the United States to follow a foreign policy of
remaining involved in overseas affairs
supporting the League of Nations
isolationism in world affairs
using United States forces to maintain peace in Europe

3. The League of Nations, the Washington Naval Conference, and the Kellogg-Briand Pact were designed to keep
peace in the Northern Hemisphere. Why did these agreements fail to prevent World War II?
Independence movements in developing countries were too strong to be stopped
The United States was not a participant in any of the agreements
The agreements lacked enforcement powers
The United States was too involved in military rearmament

4. After World War I, the United States demonstrated its return to a policy of isolationism by
lowering tariffs on imports
refusing to sign the Treaty of Versailles
promoting the Marshall Plan
liberalizing immigration policies

5. After World War I, why did American farmers fail to share in the general economic growth of the United States?
Many immigrants were settling in the west and competing with the farmers
The Federal Government reduced the number of acres in which farmers could grow subsidized crops
Farmers could not produce enough to keep up demand
Overproduction and competition caused falling prices

6. Which action best demonstrated the United States effort to isolate itself from European conflicts after World War I
lowering tariffs
attempting to improve relations with Asia
failing to sign international disarmament agreements
refusing to join the League of Nations

7. One motivation for the passage of the immigration quota acts of 1921 and 1924 was
congressional support for free, unlimited immigration
the industrialists need for workers from southern and eastern Europe
the prevailing mood of welcome to foreign ideas
a recurrence of nativist attitudes following World War I

8. During the 1920s, the prevailing view of the governments' role in the United States economy was that the government
should
control the means of production
promote the welfare state
play a major role through regulatory action
interfere as little as possible

9. Which characteristic of the 1920s is best illustrated by the Red Scare, the trial of Sacco and Vanzetti, and the activities of the Ku Klux Klan
increased nativism
belief in unlimited progress
growth in humanitarian causes
faith in big business

10. The economic boom and the financial speculation, of the 1920s, were caused in part by
installment buying and an unregulated stock market
the expansion of civil rights to women and minorities
the mobilization of the economy for war
increased government restrictions on big business

2. Consider a Keynesian model of the economy with the following equations:

C = 300 + 0.7Yd

Transfer payments = 500

T = 0.1Y

I = 300

G = 400

X = 150

M = 0.2Y

(a) Calculate the equilibrium income level.

(b) Government spending on goods and services increases by 50. Calculate the new equilibrium level of income. (1 mark)

(c) If potential GDP is 2,750 what is the size of the output gap between potential and actual GDP (derived from (a) above)? How much should public spending have been increased by in order to have fully closed the output gap?

(d) In the short-run Keynesian model of income determination what is the cause of the output gap, and what are the possible macro solutions?

In Canada, what are the challenges facing government policymakers in dealing with natural monopolies?

What are the governments possible solutions for natural monopoly? List 3 possible examples and explain

How would you compare the diversification of economy and labor force skill set in Botswana, Venezuela and Chile?

US corn production is used primarily to feed cattle and hogs to produce meat for human consumption and to produce biofuels. Suppose the demand for corn as livestock feed is given by: Qfeed=24.5-4P ,where quantities are in billions of bushels and the price, P, is in dollars. The US government mandates that a fixed percentage of US gasoline be blended with ethanol-based biofuel.

Assume this mandate fixes the total quantity of corn used for domestic fuel production at 10.5 m. bushels per year. Assume the U.S. supply of corn is given as Qs=3P

Suppose the government decides to eliminate the biofuels mandate. The demand for corn by ethanol producers is given as, Qfuel=12-10P (in the absence of any mandate).
(c) Derive the producer surplus in the US corn market with and without the mandate. Are producers better or worse off under the biofuels mandate?
(d) In your opinion, is the biofuels mandate a regressive or progressive policy? Explain your answer.

What kind of forward and backward linkages would each of the following publicly funded program might have? Comment on the number, strength, and intrinsic profitability of the linkages. Do you recommend that this initiative should be funded by the government or should it be left to the private sector?

a. Construction of a big hospital in a rural area where is no such hospital for 200 miles.

b. Creation of a large public park that from purchasing private agricultural property from private landowners.

c. Discovery and development of large deposits of natural gas

What is meant by a direct signal and an indirect signal. Below is the answer I provided. Can you confirm if this answer should be changed to an indirect signal. And if yes, can you provide an example for an direct signal?  

A direct signal is a macro indicator that signals directly what is being measured, An example of a direct signal is if a bank closes $8,300,000 loans in February and $8,500,00 loans in March. In February the average 30 year fixed rate for a mortgage was 3.64%. In March, the average fixed rate was 3.38%. This decrease can be contributed to the decrease in the Fed Funds rate by The Federal Reserve Bank. In February the rate was 1.58% and in March the rate was .65%. The fed funds rate is the interest rate that banks use to borrower from each other for short term loans. As a result, this is affects the mortgage interest rates charged by banks.

Suppose that the treasurer of IBM has chance to borrow of $10,000,000 (or its equivalent in other currency) and to invest for three months. Monthly interest rate in the USA - 1.3% per month, in Germany - 0.6% per month, in London - 0.9% per month. The treasurer of IBM does not wish to bear any exchange risk.

Current spot exchange rate: 0.8045 €/$ and 1.8095 $/£

Three-month forward exchange rate: 0.8098 €/$ and 1.8028 $/£

a. Determine whether the interest rate parity (IRP) is currently holding.

b. If the IRP is not holding, how would you carry out covered interest arbitrage? Show all the steps and determine the arbitrage profit.

c. Explain how the IRP will be restored as a result of covered arbitrage activities.

Fiscal policy: If the concern is increasing GDP, why wouldn't a government want to pursue the policy of just increasing spending indefinitely to avoid ever having decreases in GDP?

Consider the effect on interest rates and investment, also consider the worthiness of pursing increased GDP as a singular goal.

1. Assume that the US was at full employment prior to the coronavirus pandemic. Illustrate graphically, using the Aggregate Supply/Aggregate Demand (AS/AD) framework, the full employment equilibrium price level and GDP. Label the price level P0 and the full employment GDP as Q0 in your diagram. You will need three curves: an aggregate demand curve, a short-run aggregate supply curve, and a long-run aggregate supply curve.

2. Given your answer to part (1), illustrate in the same diagram what effect the coronavirus pandemic is likely to have on the economy, given the article you read. Identify the new equilibrium price and GDP level and label them P1 and Q1 respectively.

3. Explain the rationale behind your answer in part 2.

4. What types of fiscal policy responses would make sense at this time, given your answers to parts (2) and (3)? How would they affect the diagram you have drawn?

please draw/show your work. and ill give you thumbs up

Macroeconomic variables are indicators or main signposts signalling the current trends in the economy”, keeping in view this statement what is your understanding of the below key variables of Macro-Economy.                                                                                                       

• Unemployment rates
• Inflation
• Budget deficit

Discuss the various types of frictions and distortions in labor and product markets that make the adjustments of wages and prices slow, according to New Keynesian macroeconomists.