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A monopolist has a cost function C = 3Q^2 and faces the inverse demand curve P = 1200 - Q
a.) What is the profit maximization price and output?
b.) Sketch the firm's price and output decision. Calculate the deadweight loss.
c.) What iss the firm's total profit?
d.) What is rent seeking? How much, potentially, might this monopolist spend on rent seeking activities? Assume that they will earn the same profit you calculated in part c forever, and that the interest rate is 5%.
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a firm must raise $10 million dollars in funding for a capital investment project. $2 million will be raised by issuing debt with an interest rate of 10% while the remainder will be raised by issuing stocks that will yield a return of 12%.
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How much revenue does McBurger currently earn based on the information above and is McBurger maximizing its revenues
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Describe various revenue models available as video content shifts from atoms to bits. What are the advantages and disadvantages to each-for consumers, for studios, for middlemen like television networks and Netflix
Find the optimal consumption bundle if m1 = 100, m2 = 88, and r = :2. Is the consumer a borrower or a lender? How much do they borrow or lend per period?
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