Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1 . If market demand is given by QD = 1050 ? 50P, what is the equilibrium price?
a. 5
b. 10
c. 11
d. 50
c
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Explain why there is an active market for cola-flavored soft drinks in the United States but there is not an active market for sauerkraut-flavored soft drinks
What will be an ideal response?
Refer to the scenario above. If the investor plans to invest a sum of $4,000, the net present value of Option A is:
A) -$1,535.89. B) -$1,614.93. C) $898.46. D) $1,535.89.
Why does a demand curve with a constant slope not have a constant elasticity?
What will be an ideal response?
(a) Draw a figure, using the Keynesian IS—LM framework, of an economy in recession
(b) If the Fed's goal is to move output to its full-employment level, what should it do with monetary policy? What will happen to the real interest rate? What is the effect on the price level? Show the result in your diagram. (c) Suppose the Fed decides to keep the money supply unchanged. How could the government use fiscal policy to move the economy to full employment? Show the result in your diagram. (d) How does the real interest rate differ between parts (b) and (c)?