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A monopolist is deciding how to allocate output between two geographically separated markets
(East Coast and Midwest). Demand and marginal revenue for the two markets are:
P1 = 15 - Q1 -------> MR1 = 15 - 2Q1
P2 = 25 - 2(Q2) -------->MR2 = 25 - 4(Q2)
The monopolists total cost is C = 5 - 3(Q1 + Q2 ). What are price, output, profits, marginal revenues, and deadweight loss if
(a) the monopolist can price discriminate?
(b) if the law prohibits charging deferent prices in the two regions?
Using the utility maximization rule as your point of reference elucidate the income also substitution effects of an increase in the price of a product with no change in the other product.
Please try to come up with real examples: it's not enough to say which savings account decreased.
Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved prefere..
Review Netflix most recent balance sheet, income statement, statement of stockholders' equity and statement of cash flows. Pay particular attention to sales and net income for the last two years. Comment on 2-3 items that you find remarkable on any o..
Suppose the relationship between Demand for good x (Qx) can be described by the following linear relationship
By choosing to right of mid point but to left of republican agenda democrats would get more than half of votes and win What happens if democrats have a fairly socialist party agenda and locate to left of midpoint.
Explain how each of the subsequent events affects the equilibrium price also quantity of pizza- the price of mozzarella cheese rises.
Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
Suppose the impact on the interest rate of a $3 increase in government spending can be eliminated by a $1 increase in the money supply. If "the" multiplier is 4 and the income multiplier with respect to the money supply is 3, what mix of monetary and..
During World War II, both Germany and England had plans for a paper weapon: they each printed the other's currency, with the intention of dropping large quantities by airplane. Explain why might this have been an effective weapon.
The total demand for funds curve slopes downward because a rise in the interest rate causes. In the classical view, if government purchases rise (and there is no other fiscal change),
A current database in education is whether teachers should be paid on a standard pay scale based solely upon their years of training and teaching experience, or whether part of their salary should be based upon their performance
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