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A monopsonist’s revenue as a function of its only input is
R = az − bz2, z≥ 0
It is faced with a supply function for the input
z = α + βp, p ≥ 0
Where p is the input price, and a, b, α, β > 0. Find the profit-maximizing price and quantity of the input the monopsonist will choose, and compare the analysis to that of the profit-maximizing monopoly
Suppose a firm faces the inverse demand curve P = 600Q– 0.5. The firm has the total cost curve TC = 1,000 + 0.5Q1.5. Find the firm’s profit- maximizing output, price, and profit.
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
What is average variable cost? Is the firm profitable? Should it stay in business? Should it stay in business in the short run? Should it stay in business in the long run? Show your work and explain answer.
Describe key elements of technology-enabled customer relationship management and outline advantages that technology-enabled customer relationship management has over traditional seller-customer interactions.
Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. Private pay patients have a price elasticity of demand of -3. What do you charge t..
Why do you think the compensation plan differ at the two firms. In particular why do you think Kaufmann s pays commission to salespeople, while Parkleigh does not.
Explain the connection between- tax burdens and elasticity, excess burden and elasticity
The wage paid by a firm buying labor in a perfectly competitive market: The wage paid by a firm buying labor in a perfectly competitive market:
If the real wage can adjust to equilibrate labor supply and labor demmand, what is the real wage. In this equilibrium, illustrate what are employment, output, and the total amount earned by workers.
Is it appropriate to use an OLS regression on a panel data if it yields statistically better results than a fixed effects model? OLS results provide statistically significant variables and it is an overall better fit model than fixed effects in which..
In the circular economic flow diagram, households:
As a means for less developed countries to attract the savings and investment necessary for economic growth and development, is short-term portfolio investment better than Foreign Direct Investment? Explain.
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