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A monopolist's marginal revenues for each of the first eight units that it produces are. respectively; $28, $23, $18, $13, $8, $3, -$2 and -$7 per unit. The marginal costs of producing these same eight units are. respectively; $2, $3, $4, $5, $6, $7, $8 and $9 per unit. What is the smallest per product unit subsidy that must be paid to the monopolist in order to induce it to produce 7 units of its product?
Mytown uses an interest rate of 6%. What is the EAC for Mytown's policy? What is the EAC for the optimal policy? What is the optimal policy?
What investment will you choose if your utility function were given by U(M) = M2 ? What is the certainty equivalent of the chosen investment?
Illustrate what is the minimum price necessary for the company to supply one thousand cups.
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
What asymetric Information can contribute to the onset of both a currency and financial crisis.
Assuming that no currency leakage occurs, how much will the bank be able to lend to its customers following the Fed's purchase?
Elucidate what is the implication of the efficiency wage theory for unemployment. In what way are piece rates, commissions, royalties, profit sharing, and stock options substitutes for efficiency wages.
Which nation should specialize in which product. Explain how trading possibilities lines for each nation if actual terms of trade are 1 plum for 2 apples.
Cameron visits a sporting goods store to buy a new set of golf clubs.
explain why sharp decline in oil prices might not necessarily have positive or negative impact on the US equity markets (stock market) even at the current trend of volatile oil prices
Compute Ikonomia's gross national expenditure (GNE), gross national income (GNI) and gross national disposable income (GNDI).
Calculate elasticity for each variable. On this basis, examine relative impact that each variable has on demand. Illustrate what implications do these results have for industry's marketing and pricing.
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