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An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A’s monthly demand for phone calls is Q1 2,800 200p (with p measured in cents) and Firm 2’s is Q2 5,000 100p. The marginal cost of providing a phone call is 6 cents. Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
A consumer has preferences between two goods, hamburgers (measured by H) and milkshakes (measured by M). His preferences over the two goods are represented by the utility function U = √H + √M. For this utility function MUH = 1/(2√H) and MUM = 1/(2√M)..
Although airline schedules and cost are important factors for business travelers when choosing an airline carrier, a USA Today survey found that business travelers list an airline’s frequent flyer program as the most important factor.
Identify a market which you feel is perfectly competitive. The firms in this structure are considered price takers, are the firms in the market you chose all selling their product at the same price? Why or why not?
Compute, to the nearest integer, the long run equilibrium price and quantity. In the long run equilibrium, what quantity does each firm produce? Compute, to the nearest integer, the number of firms that would have entered the market.
q1. consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital
people who want to borrow to finance their investment spending. How are savers and borrowers brought together.
Eighty five years ago, America's 12-year Great Depression began with a crash. The bottom fell out of the stock market on October 24, 1929, signaling the start of the longest and deepest economic decline in the nation's history. Could the crash happen..
Compare the costs and benefits of regulation. In your opinion, do the benefits outweigh the cost or do the costs outweigh the benefits? What are the advantages and disadvantages of deregulation?
Why do the United States and many other countries have antitrust laws on the books? What's so harmful about oligopoly that warrants an entire body of law?
To introduce GNP and GDP, and other concepts of the National Income accounts, and to show how they help us understand the growth of the U.S. economy over the past century.
q1. i cant seem to figure out how to calculate. if you given the amount of money an individual will earn during their
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
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