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A monopolist faces a market A demand curve given by: QA = 70 – P and market B demand curve given by: QB = 50 – 0.5P. This monopolist pursues a separate monopoly pricing policy in each market. Assume arbitrage between the two markets can be prevented. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, the monopolist’s total profits from both markets A and B are equal to what number? (NOTE: Write your first answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. Use a period for the decimal separator and a comma to separate groups of thousands). Show all steps.
Demonstrate and discuss the effects of imposing a new industry-wide minimum safety standard. Under what circumstances might such a minimum safety standard leave at least some workers better off than they were before government intervention?
From the supply and demand schedules, from Belgium what are the equilibrium price also quantity of cocoa beans.
At the profit-maximizing quantity, what is the average total cost of producing e-books.
Assume the demand function for good x can be written as Qd = 80 - 3Px + 2PY + IOI, where Px is the price of x, py is the price of good y, and I = consumer income. According to this equation; 1. Because the coefficient on the px is negative, x is an i..
Show why this equilibrium point is unique, i.e. if we are not at point E, illustrate what would happen in this economy.
You have just been hired as the controller of Land’s End Hotel. The hotel prepares monthly responsibility income statements in which all fixed costs are allocated among the various profit centers in the hotel, based on the relative amounts of revenue..
Which investment has a higher rate of annual cash return? Investment A: $1,000 bond with a coupon rate of 4 percent selling for $1,200 or Investment B: $1,000 stock with a P/E ratio of 10 that pays out half its profits in dividends.
The equilibrium allocation is stationary over time. Write down the market-clearing condition for an arbitrary date t. Find the real rate of return of at money at the monetary equilibrium. What is the gross rate of in ation?
The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Tammy Hall is the mayor of a large U.S. city. She has just established the Office of Window Safety. Because windows sometimes break and spray glass shards, every window in the city will now have to pass an annual safety inspection.
A business is generating $1000 a month for the next 5 years at a nominal interest rate of 12% compounded monthly. How much cash should one pay for it?
The dividing line between the 1 percent and the 99 percent is an annual income of ______. (LO11)
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