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A monopolist has two types of customers. There are 100 of type A, who will each pay up to $10 for a single unit of the good, and 50 of type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If it must charge a uniform price , find that price.
Assume that spending $80 on advertising will attract 100 more Type B customers. Should the monopolist advertise? If so, what will happen to price? Explain the role of advertising, if any, in this case.
At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average total cost is $6 per unit, what will be the firm’s profit..
Derive, and show on a table, Sony's total and marginal revenue for all possible output levels. From this, draw Sony's demand, marginal revenue and marginal cost curves
grocery stores and gasoline stations in a large city would appear to be examples of competitive markets there are
But before the Fed can act, the presidents chief economic advisor holds a press conference and states that the Fed should ease its policy to stimulate the economy. Does this statement make easing the policy less or more di¢ cult for the Fed
an industry is composed of 20 firms all with equal sales. the herfendahl index ratio in this industry is a.1000 b.500
Demand for DVD rentals at a video store is described by the equation: Q= 4,000-500P, where Q denotes the number of DVDs rented per week and P is the rental price in dollars.
Individuals exchange commodities subject to the cash-in-advance constraint \(pz
in the market of haircuts the demand function is p100-0.5qd and the supply function is p10qs where q represents
Describe considerations for undertaking macroeconomic stabilization policy including understanding the use and effectiveness of fiscal policy and monetary policy in stabilizing the national economy.
Can you tell which adviser was a better selector of individual stocks (aside from the issue of general movements in the market)? If the T-bill rate were 6% and the market return during the period were 14% which adviser would be the superior stock..
Now suppose that a scientific study find that tap water is toxic, and everyone should drink only bottled water. Illustrate the impact of this study on the market and each firm. Use graphs to illustrate your answer.
cloud-based computing allows businesses to store and access large amounts of data over the internet rather than on
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