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You are a monopolist with the following cost and demand conditions: P = 100 - 2Q and C(Q) = 50 + Q2 (MC = 2Q)
a. Determine the profit-maximizing output and price.b. Calculate profits and deadweight loss.c. If this was a monopolistically competitive firm, would your answer in parts a and b change? If yes, please specify how. If no, explain why.
d. if this was a monopolistically competitive firm, what would happen to the profits of this firm in the long run?
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You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -4 while group 2's is -6. Your marginal cost of producing the product is 50. A determine your op..
In the class, we discussed the Paradox of Thrift argued by John Maynard Keynes. According to the argument, even if many household decide at the same time to increase their saving, the total saving will not increase in the long run, while it leads ..
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What do you think large corporations like Microsoft and WalMart should be regulated more or less than they are.
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