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Suppose a monopolist faces the following demand curve: P=596-4Q. Marginal cost of production is constant and equal to $60, and there are no fixed costs. how much profit will the monopolist make if she maximizes her profit? What would be the value of consumer surplus in the monopolist market? How much consumer surplus would there be if this market was perfectly competitive? What is the value of the deadweight loss when the market is a monopoly?
Suppose a firm sells 20,000 units at a price of $10, but sells 40,000 units at a price of $8. Calculate the price elasticity of demand over these prices using the arc interval formula. Determine if the price elasticity if demand is elastic, inelastic..
What considerations come into play when considering whether the United States or any other political entity is spending the right amount for environmental quality improvements
Show where or not above production function exhibits diminishing marginal productivity of labour. Determine nature of Return to Scale as exhibited by above production function.
Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will
Suppose there are two firms in a market that each simultaneously chooses a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 160 - 3Q. Also, each firm..
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
Concert attendance depends on the weather. There are three possible types of weather on the day of the concert: terrible, with probability 20%, mediocre, with probability 60%, and great, with probability 20%. What is the expected attendance, E(X)? Fi..
At some levels of output Acme's average total costs are less than Generic's, but at some levels of output Generic's average costs are less than Acme's.
When a Denver resident purchases a Coors beer (brewed and bottled in the USA), this represents a:
q1. edison electric companys president has been arguing that residential electric rates need to be raised relative to
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year.
Directions: Create a Feasibility Study for Harley-Davidson using the following outline:
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