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Suppose that a monopolist faces linear demand given by
Q(p)=100-2*p
The monopolist also pays a marginal cost of $1 for each unit produced.
What is the optimal quantity that the monopolist will charge to maximize its profits?
Why do workers need to make a decision about how much time to spend working and how much time to spend doing other things
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
Taco Bell firm raises the price of its tacos. The price elasticity of demand for Taco Bell tacos equals 5.0. What happens to the Taco Bell's total revenue? Which of the following statements is correct for the price elasticity of demand along a linear..
Microsoft has been a giant in the software industry. Can we define Microsoft as a monopoly?
List two unbiased estimators and their corresponding parameters. (Select all that apply.)
Identify the type of anti-competitive behavior illustrated by each of the following: (also note the piece of legislation that declares this type of behavior as [potentially] illegal). Calculate the Herfindahl-Hirschman (HHI) index for the for the fol..
Based on this information, calculate the profit-maximizing price and quantity and the revenue maximizing price and quantity:
Suppose that the demand curve faced by a particular firm is given by q = 300 – 5P. Could this be a perfectly competitive firm? If it is optimal for the firm to produce a positive amount of output in the short run, how much should it produce?
In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.
Suppose that a bank has assets: some required reserves, some excess reserves, some loans, and some securities. If they change their strategy, by how much can they increase their loans?
Knowing that there are different methods to compute the depreciation of an asset, which method do you think is best for taxable deductions and paying less taxes and why? Which you prefer to choose?
The Paper Dragon Limited Partnership makes two products, paper and cardboard. The relationship between π, the firm’s annual profit (in thousands of dollars), and its output of each good is: find the output of each good that Paper Dragon LP should pro..
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