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A monopolist is deciding how to allocate output between two geographically separated markets
(East Coast and Midwest). Demand and marginal revenue for the two markets are:
P1 = 15 -Q1 ----> MR1 = 15 - 2Q1
P2 = 25 - 2Q2 ----> MR2 = 25 - 4Q2
The monopolists total cost is C = 5 - 3(Q1 - Q2 ). What are price, output, prots, marginal revenues, and deadweight loss if
(a) the monopolist can price discriminate?
(b) if the law prohibits charging deferent prices in the two regions?
The Wall Street Journal's experience after it increased its cost to 75 cents. Illustrate what implicit assumptions are the publishers also the analysis making about cost elasticity.
q1. for each of the following events answer the following1 how would this event affect the money supply?2 what sort of
illustrate the effect of capital formation by comparing the production possibilities curves with the present time and one in ten years time, for two different eonomies, one with a high rate of capital formation, and the other with a low rate of ca..
Discuss whether horizontal or vertical boundaries have been changed, and whether they were extended or shrunk. Following the September 11, 2001 attacks, the U.S. government established the Department of Homeland Security.
Given the formal structure of the Solow model, the numbers in the first column should in principle be per-worker GDP numbers. However, for purposes of the problem.
Calculate the Mean from the following Frequency Distribution:
q1. why might a company use an indirect cost discrimination scheme versus direct cost discrimination?q2. starting with
these cuts are not discriminate theory, re is nothing EU can or should do about m. So why are some old EU members so upset about East European taxes.
Why doesn’t the Fed simply keep increasing the growth rate of the money supply at faster and faster rates to drive the unemployment rate lower and lower? Wouldn’t the gains in terms of faster output growth far exceed the losses from inflation?
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project.
A new car is purchased for $12,000 with a 10% down, 9% loan. The loan is for 4 years. After making 30 payments, the owner wants to pay off the loan's remaining balance. How much is owed?
The water industry in Springfield is competitive, with numerous buyers and sellers. What is the market equilibrium quantity?
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