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A monopolist demand curve and MR curve are separate. There are two different customers with two different elasticities but you still want to maximize profit (with MR=MC for each customer separately). A price discriminating defence monopolist manufacturer has a marginal cost of MC = $200. The monopolist can segment the market into two different groups: Customer A has a demand for guns
P = 400 -.5Q and MR=400-Q. Customer B demand is P = 300 – Q and MR=300-2Q. How many guns and at what price should the producer sell to each customer? Quantify why is price discrimination – two different prices - better for the producer than a one standard price? Pick any reasonable one standard price and examine if the revenue would be higher or lower? Make a conclusion about price discrimination as a strategy.
Please rank the follow curves as to how they would contribute to deadweight loss if a good that had this elasticity was taxed. Assume the supply curve has elasticity equal to 1. Most deadweight loss. Least deadweight loss
How can an event such as the terrorist attacks of September 2001 affect consumer and business confidence and the economy?
Assume the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. Illustrate what is their consumption when it rains.
What alternatives are available to the auditors? Use the AICPA Code of Professional Conduct and Josephson Six Pillars of Character to evaluate the ethics of the alternative courses of action
On Juan's 26th birthday, he invested $6,500 in a retirement account. Each year thereafter, he deposited 7% more than the previous deposit. The account paid annual compound interest of 6%. How much was in the account immediately after his 35th deposit..
A program evaluation is the systematic examination of any activity undertaken by government to make a determination about their effects, both short and long term.
Inflation across the board has increased at a rate of 4.3% over the last twelve months. For example, prices for food, gasoline, clothing and entertainment have all increased. Unemployment remains low and stable. What should the Fed do? Describe the e..
The cash-for-clunkers program: objectives and results. Did the car companies ripped the benefits of the program
Your sales are $63,000.00 and your stock is reduced by $27,000.00 worth of markdowns. Your receipts are $75,000.00. What is your ending inventory?
What is the unregulated competitive equilibrium. What is the unregulated monopoly equilibrium.
A company selling widgets advertises through three types of media: print, television and internet. Recently the company has decided to increase its advertising budget by $100,000. In order to determine where the additional money should be spent, the ..
q1. how was de beers able to control the world price of diamonds over the past several decades even though it produced
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