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Suppose a monopoly has the following demand and cost curves:
(a) At what output and price will the firm maximize total revenue?
(b) At what output and price will the firm maximize total profit?
(c) Compare the maximum profit obtainable with the profit that the firm would have if it chose a revenue-maximizing strategy.
EA finds out that two different types of people fly to Honolulu. Type A consists of business people with a demand of QA = 260 - 0.4P. Type B consists of students whose total demand is QB = 240 - 0.6P. Because the students are easy to spot.
The launch is risky because the demand could turn out to be either low or high. If the demand is high, the investment would give a return of $30 million, and if the demand is low, the return would be 0.
According to the "January theory," if the stock market is up for the month of January, it will be up for the year. If it is down in January, it will be down for the year. According to an article in The Wall Street Journal, this theory held for 24 ..
Assume that the following equations characterize a large open economy: (1) Y = 5,000 (2) Y = C + I + G + NX (3) C = 1/2(Y - T) (4) I = 2,000 - 100r (5) NX = 500 - 500e (6) CF = -100r (7) CF = NX (8) G = 1,500 (9) T = 1,000where NX is net exports, CF ..
Consider the production of Good X. Good X is produced using only labor, which can be supplied by either humans or robots, with the production function given by X=f(H,R)=H + R. Humans and robots are perfect substitutes for each other.
Suppose that Saudi Arabia lets other members of OPEC sell all the oil they want at the existing price which the Saudis set and other members accept. The daily world demand for OPEC oil is given by:P = 88 2Q
$4,000 were deposited at time 0 in an account that pays an interest of 10% compounded annually. how much should be withdrawn at the end of period 2 to have $4,000 at the end of period 4 available in the account
If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports are -$10 billion, government purchases are $20 billion, sales of second-hand items are $8 billion.
What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day Assuming that the farmer can dispose of the $7 from the writer as she wishes, what range of payments will the beekeeper accept
You are buying a new car for $20,000. You signed a contract for the loan for 4 years. Your loan has an interest rate of 12% interest (APR). You make monthly payments and the interest is compounded monthly. What is the monthly interest rate
The industry demand function for bulk plastics is represented by the following equation: P=800-20Q Where Q represents millions of pounds of plastic. The total cost function for the industry, exclusive of a required return on invested capital, is TC=3..
Suppose a tax on beans of $0.05 per can is levied on firms. As a result of the tax, the equilibrium price increases from $0.20 to $0.22. What fraction of the incidence falls on consumers Suppose the supply elasticity is 0.6. What must the demand e..
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