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Suppose that a consumer’s demand for a product is given by P = 80-2Q. A monopolist produces the product at constant marginal cost, where MC = $6. The firm has no fixed costs. Suppose the monopolist sets a two-part tariff for the good where the consumer must pay an amount T for the right to purchase the good, and then the consumer pays a price P for each unit of the good purchased.
a) What value of T and P should the firm choose if it wants to maximize its profit?
b) How much profit will the firm make?
Which of following arguments is president using to justify trade restriction on ball bearings.
describe several different fixed costs and variable costs associated with operating an automobile.
In what type of merger wave is the U.S. economy currently situated? For what reasons are companies merging? What are the risks and benefits of these types of mergers?
The price of good 1 is initially at $1, and the price of good 2 is initially at $2, with $24 avaiable to spend. The price of good 2 increases to $4. If Duane’s utility function is U(X1,X2)=min(X1,2X2), then what’s the substitution effect and income e..
Suppose that the Thai Baht is trading for $0.02, inflation in the US is 3% and inflation in Thailand is 1%. What must happen to the exchange rate in order for the purchasing power parity condition to hold?
q.the manager of the aerospace division of general aeronautics has estimated the price it can charge for providing
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In economics, the term "shutdown point" refers to the point where the
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In the replacement analysis under various circumstances. Briefly summarize what your text calls Techniques 1 (Is Appropriate When Replacement Repeatability Assumptions Hold), 2 (If the replacement repeatability assumption holds, compare EUAC of the d..
q1. on one hand the wtos role in international trade is becoming more significant. on the other hand its verdict on the
Frank was willing to contribute $40 this year to his local public television station. However, after learning that the television station had already met its goal of raising $400,000, he decided not to contribute because he knew he could watch public..
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