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Suppose that the inverse demand function is given by P=50-Q, and cost function of a firm is C=5qi: (1) For a competitive industry, find the market price, market output and the profit at the equilibrium. (2) For a monopoly, find the output, price and the profit at the equilibrium. Find the price elasticity of demand at this price. (3) If there is price discrimination, find the output, price and the profit in the secondary market. Find the price elasticity of demand at this price.
Determine the impact on the economy if the central bank in the U.S. used inflation targeting. Explain your rationale.
What are the primary differences between industrial users and home users of electricity that allow the utilities to discriminate between the two markets in terms of price? How do we compensate for these differences in order to improve the "common ..
as the fund manager for a large mutual fund you are preparing for a conference call with all your major investors.
For the next several questions, refer to the table regarding Magazines and eBooks. Fill out the Marginal Utility column for magazines. What is the marginal utility of the 4th magazine? Fill out the Marginal Utility column for eBooks. What is the marg..
The demand for labor is said to be a derived demand
Lead to an increase of 500 in national income
Two variable inputs, labor (L) and materials (M), are used to produce output. Company's current level of output: CL = $10 / unit, MPL = 25 CM = $2 / unit, MPM = 4 (!) Decide whether the firm is operating efficiently, given that its objective is to mi..
Why does a business need to understand elasticity of demand and calculate the elasticity of demand between prices $6 to $8
the as curve does not describe the same kind of relationship between price and quantity as a microeconomic supply
Suppose that the cost of aluminium utilized by soft drinks companies increases.
pricing strategy varies significantly across different market structures. the pricing guidelines in a monopoly market
Sketch the ppf ’s for both countries.d. Assuming no trading between the two, if both countrieswanted to have equal numbers of feet of timber and basketsof fruit, how would they allocate workers to the two sectors?
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