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A monopsonist’s revenue as a function of its only input is
R = az − bz2, z≥ 0
It is faced with a supply function for the input
z = α + βp, p ≥ 0
where p is the input price, and a, b, α, β > 0. Find the profit-maximizing price and quantity of the input the monopsonist will choose, and compare the analysis to that of the profit-maximizing monopoly
A firm that is considering one independent project should accept it if
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
Assume that gross national debt initially is equal to $3trillion and the federal government then runs a deficit of$300 billion. What is the new level of gross national debt? If 100 percent of the deficit is financed by the sale of securities to feder..
Draw the indifference curves that represent the following individual's preferences for peanut butter and jelly. Indicate the direction in which the individuals' utility is rising.
The management of the Mini Mill Steel Company estimated the subsequent elasticities for a unique type of steel.
Briefly describe how these firms would price discriminate: department stores, airlines, movie theatres
Consider an economy where there are N consumers, each of them having one unit of available time.
Would you suggest that the Brown Shoe Company cut its costs in order to increase its revenue.
The production function is given by f(x)=4x^1/2. If the price of a commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profit?
q1. suppose demand function for good x is estimated to be qx 8000 - 400px 200py 0.5inbspi average income px price
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
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