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Consider an economy in which a monopolistic firm serves two identical, but separate markets, called A and B. The aggregate inverse demand in each market is given by 1000−q. The cost function for the monopolist is given by (qA+qB)^2, where qA andqB denotes the amount sold in each market. Suppose that each market is regulated by a separate government, and that the government of market A requires the monopolist to sell exactly 250 units on its market. Suppose also that the monopolist is allowed to charge different prices on each market, but is not allowed to engage in more sophisticated forms of price discrimination. Given these policies, what is the total amount produced by the monopolist in equilibrium?
Differentiate the expenditure versus income approach to GDP and discuss why are the results the same? What are some of the drawbacks of using GDP while doing international comparisons among countries?
When groups are formed, we want to consider how organizational structures, processes, and situations impact on group motivation, politics, and goals achievement. Alignment of all of these structural, personal, and interpersonal components will hel..
The federal Insurance Contributions Act tax is a payroll tax that finances Social Security and MEdicare. By law, employees each contribute 7.65 percent of the workers wages toward the events.
The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.
Write a critical commentary on the Stern review on climate change from the perspective of African nations. You can use case studies of one or more African nations.
Assume you were appointed economic adviser to a less developed country in Africa. The country seeks to encourage capital formation and wants to raise the rate of saving of its own residents and encourage foreigners to invest in their country.
Why is the government so quick to regulate monopolies and potential monopolies? What are the major concerns and evils that arise from this market structure?
The French government has recently increased the retirement age, a decision which is opposed through a large fraction of the French public, especially in students
Michelle spends her weekly income of $50 on two goods: cans of hairspray and bottles of nail polish. The price of a can of hairspray is $5 and the price of a bottle of nail polish is $4. If the price of a bottle of nail polish falls to $3:b. the o..
Which of the following is not a condition required for the practice of price discrimination?
Is current U.S.Monetary Policy expansionary or restrictive?Do YOU think that current U.S. Fiscal and Monetary policies should be expansionary or contractionary? Briefly indicate why YOU think this way.
For an interest rate of 12% and a lifetime of 10 years, which proposal should be selected and calculate your answer in three ways
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