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A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 100 - 0.5P, and the marginal cost of production is $80.
a. Determine the optimal number of units to put in a package.
b. How much should the firm charge for this package?
You are a pricing analyst for QuantCrunch Corporation, a company that sells a statistical software package. To date, you only have one client. A recent internal study reveals that this client’s demand for your software is Q=300-0.20P and that it woul..
The (steady state) equilibrium value of output per person in the Solow growth model (Chapter 5) is given by y∗ = A¯^3/2(s¯/d¯)^1/2 (1). Why do you think the technological parameter A¯ enters with a deferent exponent in the equations? Or equivalentl..
Why would the gov't want to limit gas price increases? Isn't that exactly what we want to happen (price increases), to allocate scarce resources? Is the gov't in the 'price control' business, and if they are, how does this work, in free-market capita..
Suppose that the Bank of Canada unexpectedly decreases the money supply. What will happen to unemployment in the short run? What will happen to unemployment in the long run?
The BRICS (Brazil, Russia, India, China, and South Africa) nations are increasingly important in international business. Provide a comprehensive description of the economy of each of these nations and identify reasons why the BRICS countries are grow..
Why do more than 45 million Americans not have Health Insurance? Argue whether or not you feel that Health Insurance today should be either Public or Insurance driven? Discuss with two other students your reasoning.
A slave has just been thrown to the lions in the Roman Colosseum. Three lions are chained down in a line, with Lion 1 closest to the slave. Each lion's chain is short enough that he can only reach the two players immediately adjacent to him. write ou..
The city council of a small college town decides to regulate rents in order to reduce student living expenses. Suppose the annual market clearing rent for a two bedroom apartment has been $700 per month and that rents were expected to increase to $90..
What would be the equilibrium price? What is the equilibrium quantity? Calculate the deadweight loss created by the tax.
graph these events and evalute the magnitude of the reduction in wages for civilian workers as a whole. Do you concur with Professor Pessimist.
q.as manager of city racquet club you must determine the best price to charge for locker rentals. suppose the marginal
The shape of Canada’s production possibilities frontier (PPF) should reflect the fact that as Canada produces more trucks and fewer cars, the opportunity cost of producing each additional truck ______
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