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Tad's bait shop has a monopoly on the bait market at Sanderson's Lake. The demand curve for bait is: QD=56 - 8P⇔ P = 7 -1/8 * QD. Tad has two employees he can use to search for bait. The marginal cost of using Amanda to search for bait is: MCM (QM) = ¼ * QM. The marginal cost of using Andrew to search for bait is: MCN(QN) = 3/8 * QN. a. Determine how many units of bait each employee should gather. b. What is the price Tad receives for selling the bait?
Assuming that Disneyland wants to serve both types of consumers, find the entry fee and the marginal price under the Oi two-part tariff. Assuming that Disneyland wants to serve both types of consumers, find the entry fee and the marginal price un..
In reference to the 2008 Global Economic Crisis.
Reconsider the "double marginalization" model. Show how the upstream firm can use a two part tariff when selling inputs to the downstream firm to achieve the same level of profits as under vertical integration.
Calculate the price elasticities of demand for A and B at P=30, 20 and 10. How does the elasticity change as you move down the demand curve?
Explain why a monopolist will never produce a quantity at which the demand curve is inelastic - hint - if demand is inelastic and the firm raises its price, what happens to total revenue and total costs
describe various revenue models available as video content shifts from atoms to bits. what are the advantages and
Suppose the market shares of the six largest firms in the industry are 12 percent each. Compute the six-firm concentration ratio and Herfindahl-Hirschman index for this industry.
1.nbsp discuss how organizational architecture and corporate culture are related. use an example of a real-life firm
Describe why it would cost Andre Agassi or Venus Williams more to leave professional tennis tour and open the tennis shop than it would for the coach of the univeristy tennis team to do so.
the demand for international flights in the us is on average less elastic to price than the demand for domestic
The impact of a decrease in the price of memory chips on the market for computers and impact of the government imposing a price ceiling on apartment rents
Describe how the market for corn would be influenced if ethanol, a corn derivative was used to fuel cars in US. How would market be influenced if a new technology caused corn farming to be more efficient?
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