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Now suppose that the monopolist in problem #3 can separate the two groups and charge separate, profit-maximizing prices to each group.
a. What will these prices be? What is consumer surplus? What are total profits?
b. If total surplus is consumer surplus plus profit, how has price discrimination affected total surplus?
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Elucidate what happens to the official measure of GDP in each of the following situations.
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The market for paper in a particular region in the United States is characterized by the following demand and supply curves: Calculate the output and price of paper if it is produced under competitive con- ditions and no attempt is made to monitor or..
When an individual or firm in the United States requests that a bank sell foreign exchange, the bank will probably call a foreign bank and arrange a purchase. call the central bank and arrange a purchase. call another bank customer with foreign excha..
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