##### All questions below rely on the following assumptions: p=20-0.25Q MC=8= Average Cost (5 pts) If there...

All questions below rely on the following assumptions:

p=20-0.25Q

MC=8= Average Cost

1. (5 pts) If there is a monopoly firm in this industry, what is the profit-maximizing P and Q?

And what is the total profit?

1. (5 pts) What is the profit maximizing P and Q for the two-firm Cournot oligopoly?

And what is the total profit?

1. (5 pts) Assume that are three firms with equal Qs in this Cournot oligopoly.  What is the industry P and Q at the profit maximizing equilibrium?

And what is the total profit?

In: Economics

##### Question 1 (a) Use the IS-LM model to illustrate and explain the effects of a decrease...

Question 1

(a) Use the IS-LM model to illustrate and explain the effects of a decrease in consumer spending on equilibrium GDP and interest rates.

(b) Use the IS-LM model to illustrate and explain how a government could use fiscal policy to offset the effects of the decrease in consumer spending from question 1) above.

(c) Use the IS-LM model to illustrate and explain the change of equilibrium GDP and interest rates resulting from a decrease in the money supply. ALSO, under the standard assumptions, explain the dynamic responses of GDP and interest rates as they move from the original equilibrium to their new equilibrium values.

In: Economics

##### Total has discovered a potential 1 billion barrels of “wet” gas off the coast of South...

Total has discovered a potential 1 billion barrels of “wet” gas off the coast of South Africa. The gas could be used as petrol or perhaps even converted into electricity, according to one expert. The Brulpadda gas find should mean more tax revenue and a stronger rand. How Will It Affect South Africans Firstly, government will earn more tax. Total and its partners will pay the regular 28% corporate tax on all taxable income from Brulpadda. According to the most optimistic estimates, the Brulpadda find could yield \$1 trillion (R14.4 trillion) for Total and its partners, which would mean a massive tax windfall for South Africa. Certain Businesses and Skills Will Be in Demand The Brulpadda find could have a massive boost to all kinds of businesses in South Africa. Companies providing helicopters, marine services, catering supplies and transport to get supplies to the site would be required. Adapted from “Everything You Need to Know about South Africa’s Massive Gas Find” by Helena Wasserman, Business Insider SA

4.1 Assuming that government budget is at zero balance discuss the implication of the gas find in terms of government’s fiscal policy for the following economic factors:

4.1.1 Collection of revenue through taxation on personal income

4.1.2 Government spending on the provision of goods and services

4.2 Explain, with the aid of a diagram, the economic impact on cost-push inflation and aggregate output.

4.3 Discuss the main type of unemployment that would be reduced.

In: Economics

##### 1. How large is the current U.S. budget deficit and how has it changed over the...

1. How large is the current U.S. budget deficit and how has it changed over the last few years?
2. What is the total amount of U.S. debt and how has this changed in the last few years? Who holds this debt?
3. How does the current administration propose reducing the national debt? Do you think this plan is economically sound and achievable?
4. What are the potential economic consequences (short and long run) of large budget deficits/debt?
5. How have recent spending cuts impacted the economy?
6. What additional/different spending cuts would you recommend and why?

In: Economics

##### Goods differ on the basis of whether their consumption is rival and excludable. Explain the terms...

Goods differ on the basis of whether their consumption is rival and excludable.

Explain the terms "rivalry" and "excludability" as they are used to define goods.

List the four categories of goods, and define these categories in terms of rivalry and excludability.

In: Economics

##### In what ways can the terror attacks of 9/11 be traced to the 1979 Soviet War...

In what ways can the terror attacks of 9/11 be traced to the 1979 Soviet War in Afghanistan?

In: Economics

##### A. What are Thomas Friedman’s expectations about the labor force of the future? What are the...

A. What are Thomas Friedman’s expectations about the labor force of the future? What are the main causes of Thomas Friedman’s expectations? B. Thomas Friedman’s expectations for the future could be wrong. (Naturally, no forecast ever could be a guarantee.) Some, such as Tim Harford, believe that Friedman’s expectations are all wrong. Identify and explain a few potential errors in Thomas Friedman’s reasoning.

In: Economics

##### Look at how companies produce things -the techniques that they use as they produce more -...

Look at how companies produce things -the techniques that they use as they produce more - and compare it to how you and your friends choose to do leisure activities. When the cost of producing changes, how do the methods of production change? Is it similar to the choices you make when the cost of the leisure activities you do changes?

In: Economics

##### the two sides of the debates of the Scopes trial defined freedom differently. Explain what freedom...

the two sides of the debates of the Scopes trial defined freedom differently. Explain what freedom meant to each side and how the Scopes trial mirrored the trends in American society during the 1920s.

In: Economics

##### A. Identify and explain reasons presented why immigrants are more likely to start new businesses than...

A. Identify and explain reasons presented why immigrants are more likely to start new businesses than the US non-immigrant population. B. Define wage compression. (i) How can a worker be harmed by wage compression? (ii) How can an employer be harmed by wage compression?

In: Economics

##### 1. Explain how discrimination affects firm profits in each of the following cases. (3 pts) a....

1. Explain how discrimination affects firm profits in each of the following cases. (3 pts)

a. A firm that is discriminating against women because the owner is sexist.

b. A firm that is discriminating against women because the customers are sexist.

c. A firm that is discriminating against women because on average they are less productive than men in this industry.

In: Economics

##### Coke consumption per capita (gallon per capita) in Beijing is: Coke = – 0.7*Coke’s Price +...

Coke consumption per capita (gallon per capita) in Beijing is:

Coke = – 0.7*Coke’s Price + 3.8*Income + 1.0*Pepsi’s Price

Variables are expressed as percentage changes over years.

1. Explain the demand behavior of Coke drinkers in Beijing?
2. Is that true when someone saying that “Coke drinkers in Beijing follow the law of demand”? Why or why not?
3. The Beijing government was going to allow supermarkets to sell Coke. Lobbyists argue that the proposed law would help the local governments to balance their budgets. The argument is that the Coke prices will fall, people will buy more Coke and consequently local governments have more tax revenues. Giving the above estimated demand function, do you support their argument? In addition, the governments knew that Coke and Pepsi are substituted.

In: Economics

##### After viewing "An Education in Equality" "Learning Begins at Home," "A Military Education," and "an Education,"...

After viewing "An Education in Equality" "Learning Begins at Home," "A Military Education," and "an Education," write an organized and well-supported essay in which you make three observations about education and what impacts (and enhances) student learning. Consider impacts and influences such as parenting, home life, society, race, technology, ethnicity, socioeconomics, etc. A well-organized essay has a beginning, middle, and an end. A 4 page Please ASAP! Please give me a Formal Essay Outline with this.

In: Economics

##### Explain the IS-LM model, and then use it to describe the difference between expansionary fiscal policy...

Explain the IS-LM model, and then use it to describe the difference between expansionary fiscal policy and expansionary monetary policy in the case where the economy finds itself well below its full employment level of output.

In: Economics

##### Answer the questions below using the information given in the following table. China France Pairs of...

Answer the questions below using the information given in the following table.

 China France Pairs of boots produced per hour 4 8 Bottles of wine per hour 2 16 Comparative advantage ? ?
1. Which country has a comparative advantage in the production of boots?

b. Provide the range of the international relative price of wine at which the two countries would trade.

In: Economics