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The monopoly's demand is p(y) = 850-2y. The cost of production is c(y) = 50y. From the MR and MC of these, I got the optimal output of y=200 units and P=$450.
The part I was having trouble with was the following:
"Suppose in addition to the costs provided, the ?rm also has a ?xed cost of $130,000. The ?xed cost is not sunk in the long run.
Sales at The Style Shop, a clothing store for men, have declined for the third month in a row. Your boss is not sure whether this decline is due to the weak economy or some other unknown reason.
a. What would be the effect of the merger on the market's concentration ratio? On the HHI?
Why has the Federal Reserve selected this policy at this time? What efects does the Federal Reserve expect this policy to have on the U.S. economy?
Given a perfectly competitive firm in the input and output markets where: P0 = exogenous price, Q = f(K0 , L) where dQ/dL > 0 and d2Q/dL2
1. What is the difference between GDP, nominal GDP, Real GDP, GDP per worker and GDP per capita? 2. What were your reason for selecting the other country?
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
While computers can help us to work more efficiently, they can also be profoundly frustrating and unproductive. Have computers and IT really improved productivity?
Revise your Week 3 economic analysis using the feedback provided by your facilitator to evaluate the challenges of expanding your company's production to a foreign market
The demand scheme for the product created by a monopolist. Quantity demanded Price Total revenue Marginal revenue Price elasticity.
He randomly selects 8 students and finds that they study the following amounts per week: 1, 2, 4, 4, 6, 6, 8 and 14. Assuming a normal distribution, can the professor conclude with 95% certainty that the students are studying as they should?
The demand for health club services is Q = 350 − 2P or the marginal cost of providing these services is MC = 110 + 2Q.if a two-part tariff pricing system is used what is the optimal price or quantity combination.
Larry is owed money in two bankruptcies, X and Y. He is owed £28,500 as an unsecured creditor in bankruptcy X that pays £0.29 in the pound to unsecured creditors. He is also owed £40,000 in bankruptcy Y, as the sole secured creditor. The total ass..
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