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A single-product monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output, where the price on the demand curve is $38. At this output, the average total cost is $15. What is the monopolist's prot?
After checking the current news on monetary policy, describe the Fed's current policy - is it expanding or contracting the money supply, and why?
In a simultaneous move game, if both charge the low price (LP) they each earn $5K. If both charge the high price (HP) they each earn $10K. If they charge different prices, the one playing LP earns $15K and the other earns $1K. The Nash Equilibrium wi..
There has been much discussion over whether marijuana should be legalized for consumption beyondmedical use. Assume that if it becomes legal the price will be cut in half. Given that Frank suggests theestimate of the price elasticity for marijuan..
Suppose that a manufacturer is a monopolist in selling some product to a number of competitive retailers at wholesale price w. The manufacturer has marginal cost of $10 per unit. What is the market equilibrium retail price p? What is the profit-maxim..
The primary characteristics of a “relationship” include mutuality, interaction, iterative nature, ongoing benefit, change in behavior, uniqueness, and trust. Think about a company with which you have a strong relationship. How are each of these attri..
The initial price of a cup of tea is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500. Calculate price elasticity of demand for tea using the midpoint formula. Calculate the (point)..
Assume that Dr. Slight has $300 to spend on goods X and Y. Good X costs $5 per unit and Good Y costs $3 per unit. Dr. Slight combines X and Y using a very strict ratio to derive utility. He can only increase his level of wellbeing by receiving more o..
Suppose that velocity is constant at 10, but the nominal money supply increases from $1.1 to $1.21 trillion. Elucidate what must happen to nominal output.
Crowding out occurs when
If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $3000 deposit?
(a) What is your profit maximizing use of labor and capital? Clearly show your steps and calculations. (b) What is your economic profit or loss?
Measles has become an epidemic here in Orange County. About 1 in 1000 people will die after contracting the disease. Because this is such a high rate, health officials in Orange County would be well advised to pay for anyone to get a vaccination.
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