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A bridge over the Coosa River currently has no tolls and an average passage of 880 cars per day. State government wants to place a toll on the bridge with the objective of raising the most revenue. Government surveys indicate that a toll of $7.00 or more will induce all drivers to take a nearby, alternate route. What’s the optimal toll and how much daily revenue will be collected? Show the graph and the proof.
You are hungry. Very hungry. You come across one of several restaurants in a given area. As you look through the menu posted outside the door, you see that the prices are about double of what you expected.
What will price and ouput be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residualdemand curve that it faces and calculate ots profit-maximizing output and price.
Explain the difference between fixed-production technology and variable-production technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology
Discuss why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective?
You own and operate a fruit stand. Your demand curve is given by P = .5 - .002Q, where P is in dollars and Q is in pounds of fruit. Your marginal cost curve is MC = .006Q. Your fixed costs equal $10.
Under patent protection, a company has a monopoly in the production of a high tech component. Market demand is estimated to be: P = 100 - 0.2Q.
You heard that you are being transferred to California where housing is 50% more expensive. In negotiating a new salary, your objective is to keep your real income constant.
What will you put on sale in your district during the Valentine's Day week? You must provide your reasons and
Why is a common analysis period necessary in comparing mutually exclusive alternatives by the "Present Worth Method", but is not necessary in the "Equivalent Uniform Annual Cash Flow method"?
The current economic downturn has been called a housing disaster, a financial disaster and a debt crisis, but the simplifying logic of the political season has settled on what is really more a result than a cause.
What is the monopolist's profit maximizing level of output? What price will the profit maximizing monopolist charge?
What are some of the ethical dilemmas encountered by traders in their pursuit of profits for both their company and themselves?
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