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A monopolist serving two consumers groups with demand curves PS = 12−QS and PW = 10−QW faces a constant marginal and average variable cost of $2 and considers a variety of two-part tariffs. The monopolist faces no fixed costs. For your calculation, call the first consumer group the “strong-demand” and refer to the second consumer group as the “weak-demand”. Furthermore, assume that each group consists of one consumer only. a (10). Derive the monopolist’s profit with a two-part tariff that sets the per-unit price equal to marginal cost and the fixed fee equal to the implied consumer surplus for the strong-demand group. b (10). Derive the monopolist’s profit with a two-part tariff that sets the per-unit price equal to marginal cost and the fixed fee equal to the consumer surplus for the weak-demand group. 6 ECON 2009G c (20). Derive the profit-maximizing two-part tariff that sets the perunit price PA above the marginal and variable cost and the fixed fee equal to the implied consumer surplus for the weak-demand group. Calculate the implied monopoly profit. Hint: write the monopolist’s profit as a function of PA and solve for the value of PA that maximizes profit. d (10). Derive the monopolist’s profit with a group-specific two-part tariff that sets the per-unit price equal to the marginal cost and the fixed fee equal to the implied consumer surplus for each consumer group. Note that this pricing scheme allows the monopolist to perfectly price discriminate using the fixed fees.
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase German products, does our demand for euro go up or down? What ..
How important is the existence of a significant barrier to entry to maintaining a monopoly? What would be the result if a monopoly market could be easily entered?
Thus, the second investment was $120, the third investment $140, and so on. If she continues series of investment 20 years, what will be the value of the investments at the end of that time?stock? d. None of the chemicals are in stock?
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describe: 1. the characteristics of private property; 2. two other property rights arrangements; 3. at least three policies or institutional arrangements that have been developed to address property rights challenges in natural resource management.
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Assume that the officials in Ecoland have compiled the following information about their economy for last year:
Provide TWO (2) reason why it is said wineries that are looking to make an impact in China must create a strong digital strategy." In your opinion, do you think digital strategy is suitable for a luxury industry like the wine market?
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q.inflation and unemploymenta explain your answer why are inflation and unemployment often viewed as the key dare
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