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All 500 consumers in a market have identical demand for a product that is described by individual demand curves P=40-2q. A monopolist produces the product and has a cost function of TC(Q)=10000+8Q. What is the monopolist's maximum profit if it uses a two-part tariff?
q1. studies have fixed the short-run price elasticity for gasoline at the pump at -.20. suppose that international
Investment project R is estimated to have a net present value of $450,000 at a discounting factor of 11% and a net present value of $50,000 at a discounting factor of 13%.
A bill was recently introduced in the US Congress to limit greenhouse gas emissions from electricity generation and require electricity producers to generate a minimum percentage of power using renewable fuels, with some emission rights to be auction..
Let us imagine you are a consultant who has just been hired by a small business owner as an industry specialist. For this discussion you will identify one specific small business that you own, know the owner well or frequent as a customer. As the bus..
Georgi Rostov deposits$3,000 in a savings account that pays 6% interest compounded monthly. Three years later, he deposits $4,000. Two years after the $4,000 deposit, he makes another deposit in the amount of $6,000. Four years after the $6,000 depos..
Under the cost minimization rule, when will a firm employ only human labor? Why does the cost minimization rule suggest that it is unlikely a firm actually would replace human labor entirely with robotic inputs?
Find the Nash equilibrium of this Bertrand game and find the equilibrium output and profit for each firm.
Consider the utility-maximizing model in a two-good world, where our representative consumer has well-behaved preferences that result in smooth indifference curves that are convex to the origin.
q1. are the normal returns on investment included as part of costs or as part of profits in managerial economics?
If elasticities for a bottle of water are -0.8 and -1.2 in two different locations and marginal cost is the same, which location is likely to charge higher price for the bottle of water?
In which of the following situations is the Coase theorem likely to apply? Explain. The neighbor who lives below you in the apartment building loves to play old John Denver records at loud volume early in the morning. In fact, his favorite song seems..
Rhonda Hill Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in the home. Mabel is r..
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