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A risk neutral monopoly must set output before it knows for sure the market price. There is a 50% chance the firm's demand will be P=20-Q and a 50% chance it will be P=40-Q. The marginal cost of the firm is MC=Q. What is the expression for the expected marginal revenue function?
E(MR)=20-2Q? E(MR)=30-2Q? E(MR)=40-2Q? E(MR)=50-2Q?
What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
1. explain why work done at home is not incorporated however housing services that are also done at home are
During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections.
You are to consider pricing separately, pure bundling, and mixed bundling. Without computations, which pricing policy from above would you recommend. Please explain why.
If the price of coffee increases, we get a positive rate of inflation, even if no other price rises. Is this really inflation? Explain.
Present the arguments for free trade and the arguments for protection of the US domestic steel industry. Analyze and evaluate the arguments. What policy should we follow in the steel industry and why
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3577 per year, paid at the beginning of each year, in which case maintenance is provide.
Comput the following with an explanation how you arrived at each result. The Amount Consumers will spend on new consumption.
Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..
Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Qad = 5,000 ? 10P, and that the demand for tickets on the part of students is given by Qst= 10,000 ? 100P. The promoters wish to..
Use supply and demand analysis to explain price reduction of computers. What effect did price reduction have on quantity of computers demanded.
Suppose the price of a can of Diet Pepsi is $1. Find out Sally's optimal consumption of Diet Coke as a function of the unit price of Diet Coke (PC).
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