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A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:
P1 = 50- Q1
P2 = 25 - 0.5Q2
The monopolist's can serve both markets at a constant marginal cost of $10.00
What are price, output, profits marginal revenue and deadweight loss (in each market) if the monopolist can price discriminate?
Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?
Joan is deciding where to spend her spring break. If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her $300. If, instead, she travels to Florida, the trip will give her 5,000 utils of pleasure and w..
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
The price per unit remains $7.50 in both scenarios. Does the labour analyst's argument hold? Explain why or why not, and use data to prove your point. (Hint: calculate total costs in both circumstances).
Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
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