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Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120. If the good were produced in a perfectly competitive market, the equilibrium quantity would be 50, and the equilibrium price would be $150. The demand curve and marginal cost curves are linear. What is the value of the deadweight loss created by the monopolist?
In 2012, a group in Germany proposed a “wealth tax” -- on building, machinery and equipment—that would be levied on all employers having at least $1.4 million invested in such assets. Use the labor market theory learned in this chapter to analyze the..
Which of the following is true for a market with no externalities under perfect competition? Which of these is a property of public goods?
In macroeconomics from williamson (4th edition) in chapter 11, it says that demand for credit is R=q (totally elastic), but in williamsons notation, R is in nominal terms and q in real terms. Isnt that mistaken? shouldnt it be r=q? (r=real interest r..
Carefully explain the concept of the reaction function in duopoly analysis.
q.the government plans to rise state spending by 2bn in the next fiscal year. economists estimate that consumers will
Discuss the e?ciency properties of the following liability rules, by predicting the outcome under the rule. Also, discuss who bears the accident cost under the predicted outcome. Assume unilateral care accident contexts, i.e., only the potential inju..
What type of organizational structure is the company currently using?
Calloway Shirt Manufacturers sells knit shirts in two sub-markets. In one sub-market, the shirts carry Calloway's popular label and breast logo and receive asubstantial price premium. Are Calloway's current prices optimal? Management considers the $..
Do we have enough money in circulation in the public? Explain. Do you think that it is necessary to control money supply. Why or why not? Explain. Is it good or bad to have too much money in circulation in the public? Explain.
Most large airlines operate networks, or hub-and-spoke systems, which connect many spoke cities (or nodes) with flights to and from a hub airport. A network carrier serves 39 spoke cities from a single hub. How many city-pairs does it serve? How can ..
After a wage increase, the SE on leisure is -5 and the IE on leisure is 3. Find the TE on labor due to wage increase (if there is enough information provided to determine the answer).
1. in which market model would there be a unique product for which there are no close substitutes?a. monopolistic
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