What will be the answers to these two JNU questions

Posted by bhavya jain on Feb 08, 2014; 8:12am
URL: http://discussion-forum.276.s1.nabble.com/What-will-be-the-answers-to-these-two-JNU-questions-tp7584672.html

1) the home marginal propensity to consume exportable is greater than the elasticity of
the foreigner's offer curve, then in the absence of inferior goods, a tariff
(a) lowers the domestic prices of importable
(b) increases the domestic prices of importable
(c) No impact on domestic prices
(d) Cannot say

2) monopolist has constant marginal costs at Re 1 per unit, and zero fixed costs. It faces
the demand curve D(p) =100/ p , p less than equal to 20
                                   0, p > 20      ; where p is price.
What is the profit maximizing choice of output?
(a) 20
(b) 5
(c) 1/99
(d) 10