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• A monopoly is considering selling several units of homogeneous product as a single package.
• A typical consumer's demand for the product is Qd = 50-.25P, and the marginal cost of production is $120. -Determine the optimal number of units to put in a package. -How much should the firm charge for this package?
Explain how to structure her essay properly and illustrate what sorts of mistakes she should avoid making. Drawing on your prior writing experience, as well as knowledge you have gained from this phase, illustrate what advice do you offer.
Explain why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug.
If a monopolist wishes to increase its output and quantity sold
Assume that the inverse demand function for a two period depletable resource is P =24 – 0.2q and the constant marginal cost of supplying it is $6 (a = 24, b = 0.2, c = 6). What would be the efficient price in the two periods? What would be the margin..
Precise Engineering Corporation has a contract with Quik Mart Stores to provide customized software for Quik’s inventory control system. Retail Outlets, Inc., Quik’s competitor, induces Sam, a Precise subcontractor who is writing code for the Quik ..
Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national savings increase? Show the relationship between China’s national savings, domestic inves..
Galvanized Products is considering a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 15 per..
Discuss the impact of the minimum wage when there are two sectors in the economy, one is subjected to the minimum wage and the other is not.
The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Since this seedless watermelon costs $4, will sell for $7, and is highly perishable, he only expects to sell betwee..
ADVANCED ANALYSIS Currently, at a price of $2 each, 200 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $2 to $4 is unit-elastic (Es = 1). In the long run, a..
What is natural monopoly and when we will have natural monopoly in the market? What types of industry are susceptible to have natural monopoly? What is "information asymmetry"?
Suppose that the government is debating whether to spend $100 billion today to address climate change.
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