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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 company has purchased equipment ( for $52000) that will reduce materials and labor costs by $12000 each year for N years. After N years, there will be no further need for the machine, and because the machine is specially designed, it will have no M..
Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
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On average your client recieves 1%in annual simple interest in the foreign country. Explain to the client how the move would benefit savings.
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Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Define price discrimination. Describe a price di..
Benson manufacturing company is considering ordering electronic components from three different suppliers. The supplier may differ in terms of quality in that the percentage of defective components may differ among the suppliers. To evaluate the prop..
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