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1. You are given the following information on the macroeconomy:

Consumption: 300 + 0.75Y
Investment: 200 + 0.10Y
Government Spending 500
Exports 100
Imports 50 + 0.25Y

Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.

2. Suppose the demand curve for a monopolist is Q = 1000 - P, and the marginal revenue function is MR = 1000 - 2Q. The monopolist has a constant marginal and average total cost of $100 per unit.
(A). Find the monopolist's profit-maximizing output and price.
(B). Calculate the monopolist's profit.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91084985

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