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Suppose that the (inverse) market demand curve for a new drug, Adipose-Off, designed to painlessly reduce body fat, is represented by the equation P=100-2Q, where P is the price in dollars per dose and Q is the annual output. (The marginal revenue curve is thus given by the equation MR=100-4Q). Suppose also that there is a single supplier of the drug who faces a marginal cost, as well as average cost, of producing the drug, equal to a constant $20 per dose. What are the monopolist's profit-maximizing output and price? What is the resulting deadweight loss relative to the competitive outcome?
Compute the Lerner Index for the monopoly described in the question above.
If the nominal exchange rate were 1.2 Canadian dollars per U. S. dollar, illustrate what would be the real exchange rate.
Could a service industry utilize production line approach or self-serve design also still keeps a high customer focus
Utilize your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.
Can you find a Nash equilibrium in pure strategies that is not efficient. In some legislatures, proposals for modifications of the law are formulated by committees.
They value campaign funding in terms of dollars spent. Therefore, after spending ci on a campaign.
Suppose that the government is debating whether to spend $100 billion today to address climate change.
Derive the short run total cost, short run average cost also short run marginal cost as functions of output q.
Assume that over the last twenty-five years a country's nominal GDP grew to three times its former size.
How does the concept of prospect cost apply to production possibilities curve analysis. How do these decisions differ between capitalist also socialist systems
A few years ago a construction manager earning $70,000 every year working for a regional home builder decided to open his own home building company.
By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.
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