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The following is part of a price schedule, showing the quantity discounts offered by a printing shop. Does something peculiar happen as the size of your order approaches the upper limit in a given price range? Explain in terms of Marginal Revenue to the printing shop. Can you think of a more sensible way for the printing shop to offer quantity discounts?
Size of your order Your price ($)
1–10 units .50 each
11–20 units .40 each
21–50 units .35 each
Over 50 units .30 each
Two identical firms save money from polluting. A firm’s marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution
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The following equations apply to an economy: C=400+.9(Y-T) I=250-50r (M/P)d=Y-300r You also know that government spending and taxes are 500 and the nominal money supply is 400
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