Suppose a market is served by a monopoly manufacturer selling to a single customer. The customer’s inverse demand is given by P = 50 − (1/10)Q. The monopoly’s marginal cost is constant at 20, and there are no fixed costs. Show your work for each question below.

(a) If the monopoly can only charge a single price, what price does it charge? What are its profits?

(b) Now suppose the monopoly can use a two-part tariff. Find the values of the fixed fee, f, and price per unit, p, that maximize its profits.

(c) Next, suppose a customer joins the market who is willing to pay $80 per unit for up to 90 units (i.e., demand is perfectly elastic at $80 up to a quantity of 90). If the monopoly charges the f and p you found in (b), what are its profits now?

(d) Suppose the monopolist continues to use a single two-part tariff when selling to both customers. Provide an example of a fixed fee, f 0 , and price per unit, p 0 , that bring the monopolist higher profits than in (c). Proceed carefully and explain in words why the change helps to increase profits,

.            Consider the following model of an economy with no international trade, and in which the price level is fixed:

                                                                                 C = 70 + (11/12)∙DI

                                                                                             I = 20

                                                                                            G = 30

                                                                                Taxes = (1/11)∙GDP

where C is consumption demand, DI is disposable income, I is planned investment, G is government purchases, and all whole numbers are in billions of dollars.

a.            Determine the equilibrium level of production (GDP) in this economy (show your work), and draw this equilibrium situation on a graph.

b.            Use the multiplier to determine the change in equilibrium GDP that would result from an exogenous 11 billion dollar increase of government purchases. Then determine and explain the effects of this change on consumption, saving, and the government deficit.

Respond to the following topic "Trade in Michigan and the Coronavirus Pandemic"

1) Who are Michigan's major trading partners (countries) and how much trade occurs with Michigan and other countries?

2) Please tell me how trade is being affected by the Coronavirus Pandemic around the globe and in Michigan. Be specific and give examples.

3) How and why have interest rates (Federal Reserve) changed recently and according to basic economic principles should the dollar appreciate or depreciate as a result? What is actually happening to the dollar in terms of getting stronger or weaker (related to psychologically please find recent articles)?

4) Given that global supply chains have been disrupted significantly due to factory closures and sales disruptions--and with so much volatility and uncertainty around the world--what do you think the effect will be on international business going forward?

The US economy was hit two shocks at the onset of the 2008 Global Financial crisis. First, it faced a negative supply shock due to a doubling of the price of oil, large price increases in other commodities and the collapse of a domestic housing bubble. Soon after, a negative aggregate demand shock followed, as consumer optimism dropped, while a reduction in credit supply in the financial sector caused firms to cut back on their investment plans.

Using the AS/AD model and assuming that the economy is initially at its long-run equilibrium (where output is equal to Y*), show on a graph what happens in the short-run to inflation and output when the economy is hit by a negative demand shock such as a drop in consumer optimism or firm investment.

9. Taxation - An algebraic approach

Suppose the supply of a good is given by the equation QS=100P−100QS=100P−100, and the demand for the good is given by the equation QD=350−50PQD=350−50P, where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit.

The government decides to levy an excise tax of $3.00 per unit on the good, to be paid by the seller.

Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows:

Given the information you calculated in the preceding table, the tax incidence on consumers is   per unit of the good, and the tax incidence on producers is   per unit of the good.

The government receives   in tax revenue from levying an excise tax of $3.00 per unit on this good.

True or False: The price ultimately received by the seller (that is, the amount of money that the seller gets to keep after receiving payment from the buyer and paying any applicable taxes) would have been different if the tax had been levied on buyers instead.

True

False

. Draw a typical business cycle and identify the four phases of the cycle on your graph. List four macroeconomic variables that are pro-cyclical, and indicate whether each one is a leading, lagging, or coincident indicator.

A column in the New York Times in 2017 was titled “The Low-Inflation World May Be Sticking Around Longer Than Expected.” Are the low inflation rates of recent years entirely the result of Federal Reserve policy? Could they have occurred without the Fed having a mandate to achieve price stability? Briefly explain.

1. How has the relationship between pollsters and the media developed over time both in terms of the field of polling journalism overall, and specifically, The Marist Poll? 3. What lessons in polling journalism from the 2016 presidential election can be applied to the current 2020 presidential campaign?

3. What lessons in polling journalism from the 2016 presidential election can be applied to the current 2020 presidential campaign?

The demand for marijuana is given by
QMd =a−bPM−cPA−I

where QMd is the demand for marijuana, PM is the price of marijuana, PA is the price of alcohol, and I is the income. a, b, c > 0

a. Indicate whether alcohol is substitute or complement for marijuana. Why?

b. Is marijuana an inferior or a normal good? Why?

Discuss the issue of discrimination in the workplace. Fifty years after the Civil Rights Act of 1964, there remain great imbalances regarding jobs, pay, and opportunity for women and minorities. What positive measures might we adopt to reduce those imbalances? Is diversity in the workforce something that would benefit employers? If so, is affirmative action a good way of achieving that goal?

What does loyalty to your company mean, and how important is it, morally? Under what circumstances, if any, do employees owe loyalty to their employers. What conditions would justify, or morally require, an employee to blow the whistle on his or her employer?

Marx and Mill both thought that there were historical forces blocking the full development of human freedom. How are their views of freedom (and secondarily history) different? What do Marx and Mill want people to be free from? What did each thinker think that freedom was for? You can refer more to Marx in the answer if you prefer.

Locke and Marx each discussed the role of private property. Why did Locke defend it and why was Marx critical of it? What were the effects of private property on society and politics in each case?