Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2.
(a) Suppose the firm is restricted to set a single price for both markets (i.e., no price discrimination). What price does the firm set? How much profit does the firm collect?
(b) Suppose the firm is able to set a different price for each market (i.e., third-degree price discrimi- nation). What prices does the firm set? How much profit does the firm collect?
(c) What is the price elasticity of demand in each market at the prices you identified in (b)?
(d) Compare the prices in each market with price discrimination taking into consideration the differences between the price elasticity of demand in each market at these prices. Do you think there is a relation between the price and the price elasticity of demand in each market? Why?
(e) Discuss the overall effects of price discrimination (relative no discrimination) on profit, consumer surplus, and total welfare.
Suppose (contrary to fact) that the Scottish independence referendum had passed, Scotland had become independent, and you became its finance minister. Your first order of business is to recommend a currency for Scotland.
Describe nominal GDP and real GDP in year four using the following information: in year one, the base year, 10 computers sold at $2000 each, and 15 televisions sold at $500 each.
Suppose V=$0, what is Jim's labor supply function now. Draw his labor supply curve. Illustrate what happened to his wage and substitution effects.
q1. canadian gas companies shipped 21.4 billion cubic meters to the us last year up from 20.1 billion in 1983 according
q1. when the price of ketchup rises by 15 the demand for hotdog falls by 1 calculate the cross -price elasticity of
what is the cross-price elasticity of demand between computers and CD-RW's? Are these goods substitutes or complements?
Does the Aggregate Demand (AD) curve always slope downward? Discuss and use explanations (interest rate effect, wealth effects, open economy effect). The Aggregate Supply (AS) curve slopes upward to reflect the profit motive of businesses. So, why th..
Pretentious that yields for each stock are around generally distributed, with which investment strategy do you have the smallest chance of losing money?
Suppose the Fed decided to purchase $50 billion worth of government securities in the open market. What impact would this action have on the economy? Specifically, answer the following questions:
If you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered theirs also? Di..
Suppose a demand curve has a vertical intercept of (0,100). Suppose a supply curve has a vertical intercept of (0,0). The equilibrium price is $50 and the equilibrium quantity is 60. What is the total surplus in dollars?
What is the percent value of the bond in the absence of inflation if the market interest rate is 8%? (b) What would happen to the value of the bond if the inflation rate over the next five years is expected to be 3%?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd