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Shirley has just invented a new pain-relief drug and has obtained a patent, so no one can sell theproduct without her permission. Shirley is willing to sell the rights to be the monopoly provider of thenew product in the Australian market. (That is, the firm that buys the rights to use the patent becomes asingle-price monopolist selling drug in the Australian market.) Each unit of the drug costs $2 to make(that is MC = $2 per unit) and the demand curve in Australia for the product is q = 18 - P. What is themaximum that the government would be willing to pay for the patent? (Hint: the government would liketo maximise total surplus of producers and consumers in the market, but is not willing to pay more thanthe total surplus generated by the new drug.)
What if The heuser company currently outstanding bonds have 10percent coupon and a 12 percent yeild to maturiity and a mariginal tax rate of 35 percent what is the after tax cost of debt?
Is it wrong to use the total income test for elasticity, when there is a direct relationship between price and total revenue the demand is elastic.
List and describe two positive externalities and two negative externalities the copy Center is associated with in society. Select a business in your community with which you are familiar and describe the positive or negative externalities the ..
Illustrate what shape do you think the marginal benefit curve is for carbon dioxide abatement.
Which of the following is the best example of a monopolistic competitor? Firms in a monopolistically competitive industry produce:
Write a brief description of the fiscal policy of the United States and would you describe it as "expansionary" or "contractionary"?
The data are available for output (Q) and Long Run Total Cost (LTC) for a firm. Using appropriate calculations determine the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.
1. in 2009 the interest rate on 20-year bonds was 2 per year on switzerlands government bonds and 3.5 on u.s.
Distinguish macroeconomics and microeconomics. What is the difference between positive and nonnative economics? How can knowledge of positive economics be useful in normative economics?
Tom total revenue from cafe is 50000 per year, he bought a coffee machine costing $5000 an interest rate of 5 percent and $3000 is a loan from the bank which the rates is 10%
a) If the Fed requires banks to hold 5% of deposits as reserves, how much in excess reserves does First national now hold b) Assume that all other banks hold only the required amount of reserves.
Why is the Gross Domestic Product important to policy makers and the ordinary civilian?
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