General questions to get opinion

"Monetary policy remains quite accommodative, with short-term real interest rates still close to zero. In addition, fiscal policy will likely continue to provide considerable impetus to domestic spending through the end of this year." What does he mean by the above statement and what indicators would he use to illustrate his position. Explain both the monetary and fiscal indicators. "Despite a dramatic increase in cash flow, business fixed and inventory investment, taken together, have risen only moderately. Indeed, internal corporate funds exceeded investment over the course of last year for the first time since 1975." When he talks about business fixed and inventory investment,... click for more

The estimated cost function is C = 20 +2Q2. Show all work

1. Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 +2Q^2. Show all work. a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10. c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why?

Demand and cost functions for a function with a patent

2. Suppose you are the manager of Alpha Enterprises, a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for bubble memory chips are Q = 25 - .5P; C = 50 + 2Q. a. What is the firm's inverse demand function? b. What is the firm's marginal revenue when producing 4 units of output? c. What level of output would maximize profits? d. At what price would you maximizing profits? e. What will be the dollar level of your profits?

Production function is given by Q = K1/2L1/2 and that capital is fixed at 1unit.

3. The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given by Q = K^1/2L^1/2 and that capital is fixed at 1unit. a. Calculate the average product of labor when 9 units of labor are utilized. b. Calculate the marginal product of labor when 9 units of labor are utilized. c. Suppose the firm can hire labor at a wage of $10 per hour and output can be sold at a price of $100 per unit. Determine the profit-maximizing levels of labor and output. d. What is the maximum price of capital at which the firm will still make non-negative pro... click for more

Multiple choice question: Suppose that initially the price is $50 in a perfectly competitive market.

Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently and some firms leave the industry and the industry returns back to a long run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant? a. $50. b. $45. c. Lower than $50 but exact value cannot be known without more information. d. Larger than $45 but exact value cannot be known without more information.