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Regulating Monopoly. Explain how a regulator can reduce the deadweight loss associated with monopoly by setting a price cap in the market. Show what the ideal level of this price cap is, and the resulting inefficiency. Will this same strategy work for regulating natural monopoly? If so, explain why; if not, explain what strategy would work to reduce deadweight loss.
What is the marginal product of the second employee. What is the marginal revenue product of the fourth worker.
Explain how does your graph relate to the other two graphs. What do any of these graphs have to do with price discrimination.
Does a tug of war between AVC and AFC eventually take place?
q.suppose the market demand for apples is given by qd 1600-100p and there are two firms operating in it each with a
Find the total revenue of the monopolist when it sells 6 units of the commodity without practicing any form of price discrimination. What is the value of the consumers' surplus?
When the wage rate increases, individuals recognize that the opportunity cost of leisure has risen, choose to substitute labor for leisure, and thus offer to work more hours. This is called the
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
Bribes: Two players find themselves in a legal battle over a patent. The patent is worth 20 to each player, so the winner would receive 20 and the loser 0. Given the norms of the country, it is common to bribe the judge hearing a case.
Suppose also that ham and cheese are the only goods that this person buys and that bread is free.
Does built in stability mean assume that non-discretionary changes will take place automatically, provide tax rates and systems in a place.
Yesterday, the current exchange rate was $ 1.05 Canadian per U. S. dollar and traders expected the exchange rate to remain unchanged for the next month. Today, with new information, traders now expect the exchange rate next month to fall to $ 1 Canad..
jane works part-time and earns 12000 per year. because she is below the poverty line she also earns 4000 in various
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