From the perspective of a developing country, why may FDI be preferable to FII?

Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand function that she faces is given by

P=20 - 0.6 Q

where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by

TC = 23 + 7 Q + 0.2 Q2

(a) What is the marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q).

MR=__________

(b) What is the marginal cost function of this firm? Use capital letters in your response (i.e. Q not q)

MC=__________

(c) Which of the following best describes what the marginal cost means in words?

(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you round correctly.

To within one decimal place (e.g. 2.3), she will produce __________kgs of coffee to maximize profits.

(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly.

She makes £__________ of profit.

(f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one decimal place (e.g. 11.4).

She would make __________ kg of coffee and charge £__________  per kg.

(g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g. 1.3).

The deadweight loss is £__________ .

Solow model without ideas accumulation

Q. Let's consider some comparative statics

(change in one exogenous variable while keeping the other exogenous variables constant).

What is the long run (steady-state) effect of a permanent reduction in the depreciation rate on the stock of capital, capital per worker, GDP, and economic growth?

Explain your reasoning using the relevant diagram

why might exposure to foreign trade hurt the economic development of poor countries? clearly explain using the relevant facts and model

Solow model without ideas accumulation

Consider the simple Solow model without ideas accumulation in the long term (steady-state).

What does the model predict economic growth?

What does it predict the level of GDP?

Write 350 words analysis about Blaine Crissman owner of the South Dakota Equity Partner.

1. What is the difference between a classical structure and a neoclassical structure? Provide examples of each type.

Two firms set prices in a market with demand curve Q = 6 − p, where p is the lower of the two prices. If firm 1 is the lower priced firm, then it is firm 1 that meets all of the demand; conversely, the same applies to firm 2 if it is the lower priced firm. For example, if firms 1 and 2 post prices equal to 2 and 4 dollars, respectively, then firm 1–as the lower priced firm–meets all of the market demand and, hence, sells 4 units. If the two firms set the same price p, then they each get half of the market, that is, they each get (6−p )/2 . Suppose that prices can only be quoted in dollar units, such as 0, 1, 2, 3, 4, 5, or 6 dollars. Suppose, furthermore, that costs of production are zero for both firms. Finally, suppose that firms want to maximize their own profits.

Show that posting a price of 0 dollars and posting a price of 6 dollars are both dominated strategies. What about the strategy of posting a price of $4? $5?

True or False (please explain the reasons of why you choose true or false)

1. A producer can charge a price far greater than marginal cost and earn large profits so long as barriers to entry prevent competitors from entering the industry.

2. Relative to competitive pricing, oligopoly pricing increases producers’ profits, reduces consumers’ surplus, and (in net) reduces social surplus.

1. When income tax is lowered to 20% level, how much more growth can be obtained?

2. When dividend tax is 0%, how much more growth can be obtained?
3. Which policy is better for the government? And which policy is better for the company? Why would government employ these 2 policies simultaneously?

Do you agree that inflation causes higher consumption tax? Elaborate the answer.

Roger has invited Caleb to his party. Roger must choose whether or not to hire a clown. Simultaneously, Caleb must decide whether or not to go to the party. Caleb likes Roger but he hates clowns - he even hates other people seeing clowns! Caleb’s payoff from going to the party is 4 if there is no clown, but 0 if there is a clown there. Caleb’s payoff from not going to the party is 3 if there is no clown at the party, but 1 if there is a clown at the party. Roger likes clowns - he especially likes Caleb’s reaction to them but does not like paying for them. Roger’s payoff, if Caleb comes to the party, is 4 if there is no clown, but 8 − x if there is a clown (x is the cost of a clown). Roger’s payoff, if Caleb does not come to the party, is 2 if there is no clown, but 3 − x if there is a clown there.

• Write down the normal form game

• Assume x = 2 Find the Nash equilibrium (Pure and Mixed if any)

What are the best way to improve the business sector in this pandemic today as many family business sectors get impact on it?

Answer please the Question below with your own words - WRITTEN FORM - Written means that it is typed here not as a picture

2) In a 1953 study of stock prices, what did Maurice Kendall find and what does it mean in terms of the EMH? Explain

2.1) Even if the markets are efficient, you can find a job as a professional portfolio manager. How is that possible?

(Chapter 2) talks about the budget constraint, and the concepts of opportunity cost and marginal decision making. I want you to share about a recent decision making or coming decision that you have to make, and how these economic concepts fit into your decision making? What are some marginal costs (opportunity cost) and marginal benefits (utility) associated with such a decision?