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A university's students have demand for credit hours given by q=30 - 0.04p, where p is the price per credit hour.
a. If the university charges only one price for credit hours irrespective of the number of credit hours a student enrolls for, identify the price per credit hour that would maximize revenue for the university.
b. If the university adopts a two tier pricing structure, identify the structure that would maximize revenue for the university.
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Determine the cost to the government of buying firms unsold units
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Yesterday Susan determined that the risk-free rate of return rRF, is 3 percent, the required return on the market portfolio, rM, is 10 percent, and the required rate of return on Stock K, rK, is 17 percent. When Susan considers the effect of this cha..
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