Question: how to graph and calculate this questions Q1. Construct a Demand Curve for a 'Normal' Good from a Budget Constraint; and from this Demand Curve
how to graph and calculate this questions
Q1. Construct a Demand Curve for a 'Normal' Good from a Budget Constraint; and from this Demand Curve produce the corresponding Marginal Revenue Curves for each of the following market structures:
(a) Perfectly Price Discriminating Monopoly; (b) Simple Monopoly; and (c) Pure Competition.
Rank the above three markets from the largest to smallest quantity produced and consumed, given the same cost structure (supply curve) for each market?
Q2. In a world of 'rational' consumers and only two goods X and Y.
(a) Can both X and Y be 'Normal' Goods?; (b) Can both X and Y be 'Inferior' Goods?
Show a graph of each scenario and explain your position on (a) and (b).
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