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A monopolist faces a demand given by p = 30 – 3y. Its cost function is c (y) = 3y^2 + 6y
a) What is the optimal level of output for a monopolist?
b) What is a monopolist price?
c) What is the total profit (or loss)?
d) Show answers to (a), (b), and (c) on a graph that includes demand, MR, and MC
e) Calculate the dead weight loss because of inefficiency of exercising monopoly power?
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The government imposes an excise tax on the sale of all toothbrushes. Before the tax, 2 million toothbrushes were sold every year at a price of $1.50. After the tax is imposed, 2 million toothbrushes are sold every year; consumers pay $2 per toothbru..
You manage a company that competes in an industry that is compromised of five equal-sized firms.A recent industry report indicates that a tariff on foreign imports would boost industry profits by $ 30 million
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The production function is given by f(x)=4x^1/2. If the price of a commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profit?
Suppose that you have had a one-hundred dollar bill hidden inside your mattress for the past year. Suppose also that at the beginning of the year, you could have instead used the hundred dollars to purchase a bond that would have given you a real ret..
The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.
If Starbucks introduces the world to premium blends, and demand rises substantially, illustrate what will happen in this market as it moves to a new equilibrium.
What will be the government deficit. If the government finances the deficit by issuing bonds, what amout of bonds will it issue?
Assess the role of the Federal Reserve in mitigating the negative impact of the 2008 financial meltdown on the economy.
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