Question
1.A monopoly company has a total cost function (TC), TC (Q) = 400Q + 30 Q and faces demand function given by P = 24000
1.A monopoly company has a total cost function (TC), TC (Q) = 400Q + 30 Q and faces demand function given by P = 24000 - 20Q
What is marginal cost (MC) to maximize its profit?
6. Analyse how does an increase in the saving rate by consumers (such as from 10% becomes 15%) affects economic growth? Explains detailed as possible by using macroeconomics equilibrium (AD curve and AS curve).
7. Does the population explosion play positive role in economic growth? Explains detailed as possible.
8. Which is better for the economy (Economic Growth) low interest rate or high interest rate? Why? Hint: use AD curve and AS curve. Explains detailed as possible.
9. Which one you choose to have economic growth? Inflation ? or deflation? Defense your answer by using AD curve and AS curve.
10. Using Aggregate Supply curve (AS) and Aggregate Demand curve (AD), demonstrate one source of inflation. Explains detailed as possible
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