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Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in that society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social surplus created by eradicating polio?
1. industry demand function q 14 - frac12p 0.001income. marginal cost is fixed and equal to 16. fixed costs 0. you
Draw the production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today.
The farmer wants you to work out how many heifers to carry through the system so that he can replace the cull cows and
What quantity, Q, should Banana Republic order, and what price P should it expect to charge? Illustrate the situation in a carefully labeled diagram, including the graphs of demand, marginal cost, marginal revenue, average total cost. Highlight the r..
generally speaking many companies are interested in the potential cost savings of using the same product and
tammy monahan is considering the purchase of a home entertainment center. the product attributes and weights she
Why are some countries today much poorer than other countries? Are today’s poor countries destined to always be poorer than today’s rich countries? If so, describe why. If not, describe how today’s poor countries can catch or even pass today’s rich c..
The fashion (clothing), consumer electronics, fine fragrance industries are knwon to practice or have practiced resale price maintenance. In each case,indicate the probable motivation for RPM and the likely welfare consequences.
How much will firm 1 earn if it convinces the mayor to decrease the medallion fee by $40,000 (F = – $40) so that the medallion fee is entirely eliminated?
Suppose that the economy is already in recession, and both President and Congress have declared to do something to restore the economy.
The reason a profit-maximizing natural monopolist cannot set price equal to marginal cost is that it would:
Draw the demand curve for your product (market share vs. price). If a segment is indifferent between buying and not buying, assume they will buy.
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