High and rising inflationary rate has an effect of increasing interest rates. During inflation, money loses value and lenders (such as banks and other financial institutions) have to reflect an upward adjustment on the interest charged on loan-able funds (credit funds). High and rising inflation therefore increases the cost of capital/credit and the demand for funds is largely reduced in the economy, limiting the availability of investible funds. Moreover, the limited funds available will be invested in physical facilities which appreciate in value over time. It is also possible the diversion of investment portfolio (the amount available for investment) into speculative activities away from directly productive ventures
Wilfykil answered the question on February 7, 2019 at 07:07
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As part of the analysis, you establish that the total demand for the firm‟s output is given by the
following equation:
Q = 50 – 0.5P
and the demand for the firm‟s output in the two markets is given by the following equations:
Q1 = 32 – 0.4P1 and
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Q2 = Output sold in Market 2
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P2 = Price charged in Market 2
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Date posted: February 7, 2019. Answers (1)
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enable the firm to maximize profits. This firm is a monopolist which sells in two distinct markets, one of
which is completely sealed off from the other.
As part of the analysis, you establish that the total demand for the firm‟s output is given by the
following equation:
Q = 50 – 0.5P
and the demand for the firm‟s output in the two markets is given by the following equations:
Q1 = 32 – 0.4P1 and
Q2 = 18 – 0.1 P2
Where: Q = total output
P = Price
Q1 = Output sold in Market 1
Q2 = Output sold in Market 2
P1 = Price charged in Market 1
P2 = Price charged in Market 2
The cost of production is given by C = 50 + 40Q
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Date posted: February 7, 2019. Answers (1)
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which is completely sealed off from the other.
As part of the analysis, you establish that the total demand for the firm‟s output is given by the
following equation:
Q = 50 – 0.5P
and the demand for the firm‟s output in the two markets is given by the following equations:
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Where: Q = total output
P = Price
Q1 = Output sold in Market 1
Q2 = Output sold in Market 2
P1 = Price charged in Market 1
P2 = Price charged in Market 2
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Date posted: February 7, 2019. Answers (1)
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