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Think of two examples of pure monopoly in the real world-one of a public good and one of a private good. Then, with reference to both examples, post a response to the following:
1. Can both monopolies continue endlessly? Why or why not for each example?
2. What factors could cause the monopolies to end?
3. Is there a difference between the public monopoly and a private monopoly?
Identify each as being consistent with risk averse, risk neutral or risk seeking behavior in investment project selection. Explain.
Demand for DVD rentals at a video store is described by the equation: Q= 4,000-500P, where Q denotes the number of DVDs rented per week and P is the rental price in dollars.
Find the amount of the transfer implied by consultant B and determine whether the consumer is better or worse off from Consultant C's suggestion than before the price increases.
Calculate the point cross price elasticity of demand with respect to the price of competing television sets (P C ) at the values represented in question six and calculate the point income elasticity of demand for HD televisions at the values represen..
How many nurses does National Hospital employ, and what wage will National pay its nurses, what is the deadweight loss arising from monopsony?
Is the main outcome of economics (high standard of living) the only relevant question in the realm of economic analysis? Do you agree? Is quality of life also significant?
During middle years of this decade, the exchange rate of the United States dollar has declined against the currencies of its major trading partners.
This price reduction would also increase sales to 220,000 units during the relevant years. a) Make the decision tree. b) What is the optimal strategy for the monopolist?
The future possibility of doctors examining X-rays and performing other responsibilities from remote locations through the Internet. How will this change affect international business?
To prevent gasoline values from having devastating effects on economy it has been proposed that all gasoline values in U.S. be fixed at the average value for the past 2-years.
Calculate the expected utility of each project and identify the preferred project according to this criterion. (c) Is this individual risk averse, risk neutral, or risk seeking? Why?
Use method of Lagrange multipliers to find the cost function c(r,w,y). Find out the average and marginal cost. Find out the interpretation of the Lagrange multiplier in part (a)? What is the importance of term (a+b) being less than, equal to, or grea..
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