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Q1. A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%. Explain how much change in the number of units sold can the company afford and still be no worse off?
Q2. You are the manager of a monopoly. A typical customer's inverse demand function for your firm's product is P = 100 - 20Q and your cost function is C(Q) = 20Q.
a. Determine the optimal two-part pricing strategy.
b. Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price?
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.
Support your answer amid an illustration which shown market equilibrium for chocolate bars which comprise x and y interrupts of the curves and label them accordingly.
Find a current article about one or more of the macro variables for a nation of your choosing, such as GDP, employment, inflation, or international trade.
Provider A charges $120 per month for the service regardless of the number of phone calls made.
Give an example of a government created monopoly. Is creating this monopoly necessarily bad public policy?
Elucidate how do the GDP per capitals change after accounting for price indices.
Which of the government policies below is not likely to encourage per capita economic growth.
Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
One main difficulty examined in the book is the cleanup of hazardous waste sites.
Illustrate what price should the firm charge to realize the targeted profit. Illustrate what would be its (cost-based) markup ratio.
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