How much government raise expenditures to shift demand curve
Suppose that there are crowding-out effects and the MPC is .9. By how much must the government increase expenditures to shift the aggregate demand curve right by $10 billion?
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Glass Industries reported the following data for the year just ended: sales revenue, $1,750,000; cost of goods sold, $980,000; cost of goods manufactured, $560,000; and selling and administrative expenses, $170,000. Glass' gross margin would be :
There are two identical firms in an industry. Each firm uses a Cournot strategy to maximize profits. If the best response function of firm one is: Find the equilibrium level of production for both Firm 1 and Firm 2
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If Firm 1 believes that Firm 2 will sell q2 =2. By using a Cournot model, calculate the profit maximizing level of production for Firm 1, price, profits for each firm, and consumer surplus.
What are the price, quantities, and profits for each firm in equilibrium? Assume that the government charges a per unit tax of $1. What are the price, quantities, and profits for each firm in equilibrium?
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