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A monopolist faces a demand curve P = 210 - 4Q and initially faces a constant marginal cost MC = 10.
a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price.
b) Suppose that the monopolist's marginal cost increases to MC = 20. Verify that the monopolist's total revenue goes down.
c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC = 10. Find the long-run perfectly competitive industry price and quantity.
d) Suppose that all firms' marginal costs increased to MC = 20. Verify that the increase in marginal cost causes total industry revenue to go up.
Is this rate a single number that is used in all situations?
Kal Tech Engineering is investigating the possibility of acquiring new automated packaging equipment at a cost of $12,000. The equipment will have a salvage value of $1,000 at the end of its useful life of 10 years. It is determined by the plant e..
he Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a statmp each time she purchases one dozen bagels $5. After a consumer accrues 10 stamps, she receives one dozen bagels free.
suppose that an individuals demand curve for doctor visits per year is given bye the euqation p=100-25q, where q is the number of doctor visists per year and p is the price per visit. suppose also the that marginal cost of each doctor visit is $50..
ModMill has just announced that the firm will finance the purchase using equity. What is the new price per share of the firm's stock? How many shares will ModMill need to issue in order to finance the purchase?
What is Century's final payment on May 6? Assume no taxes.
Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles. Suppose that, instead, the market quantity demanded at a price of $2.50 is only 75,000. How many firms ..
Find the yield to maturity of the following securities: A. a security paying $ 1000 in one year, for which you pay $926 today B. a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today
Suppose it is known that 45% of the population are Coalition voters, 45% are ALP voters, and 10% vote for Greens.
At the end of their useful lives, both A and B may be purchased with the same cost, benefits, and so forth. If the MARR is 12%, which alternative should be selected based on the internal rate of return using the least common multiple approach.
Solve again for the price that the consumer pays
What is "neutral" macroeconomic management? Give one example of neutral fiscal and one example of neutral monetary policy. Which is likely to be more neutral, a tax cut or a change in the discount rate? Why?
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