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Suppose the demand curve for a monopolist is QD = 500 − P, and the marginal revenue function is MR = 500 − 2Q. The monopolist has a constant marginal and average total cost of $50 per unit.
a. Find the monopolist’s profit-maximizing output and price.
b. Calculate the monopolist’s profit.
c. What is the Lerner Index for this industry?
Assume that the US is Home. For each of the transactions below (including the paymen for each), is it more likely to lead to a Current Account (+) or a Financial Account (-) or neither on the US BOP? Cuban tourists take a whale-watching cruise out o..
Purchasing a Milling machine will cost $95,000. Installing the machine cost $15,000. Installiation and milling machine cost go together. Special tools that need purchasing cost $10,000. The Milling machine has a lifetime of 10 years. Determine the ca..
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sust..
Assume that Robert is willing to work for 40 hours per week no matter what is the wage rate, so his labor supply curve is vertical at 40 hours. The demand curve for Robert is given by the equation: W = 120 – H, where W is the hourly wage rate and H i..
There is some evidence that during the 4th century in the Roman empire, public officials were paid in kind or “in equivalent prices”, instead of coins. What can be inferred from this?
It is expected that the price of a bushel of wheat will increase in one month. This belief will result in
You are going to display what happens in the long run in perfectly competitive markets when firms are operating at a loss. Demonstrate the shift that will occur in the market in the long run if all firms in this market are operating at a loss. Identi..
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonald's and Wal-Mart.
The smith company made and sold 10,000 metal tables last year. When output was between 5,000 and 10,000 tables, its average variable cost was $24. In this output range, each table contributed 60% of its revenue to fixed cost and profit.
q.suppose that a citys energy demand is 30 megawatts during off-peak times and 40 megawatts at its peak. the city has
What is the difference between economic profits and accounting profits, and how does this difference matter for actual business decisions?
Lets denote the price of a nonmaturing bond (called a consol) as Pb. The equation that indicates this price is Pb = l/r, where l is the annual income the bond generates and r is the nominal market interest rate. Suppose that the bond promises the hol..
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