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A firm is a monopoly in the output market and a monopsony in the input market. Its only input is the finished good, which it buys from a competitive market with an upward-sloping supply curve. The firm sells the same good to competitive buyers in the output market. Determine its profit-maximizing output. What price does it charge in the output market? What price does it pay to its suppliers?
Suppose that you are going to buy a BMW that sells for $40,000. Assume that the interest rate on a savings account is 10% and that your savings account currently has $40,000. For simplicity, assume that BMWs are the only good in the economy.
Are there any differences in the eligibility requirements for TRI-enrollees based on reimbursement ability by the facility? If so, is this "fair?
What is meant by immiserizing growth? Which type of growth will most likely lead to an increase in the nation's welfare?
Consider the following information about the market for Bayer Heroin-Hydrochloride: P = 10.525 - 0.1QD P= 3.25+1.4QS a. What is the equilibrium market price for heroin b. What quantity of heroin is sold at market price What quantity is demanded
Comparing their combined output with the output when the MC of each firm is $6, explain why the totals differ.
You may select more than one condition. You will receive credit for each correct condition. You will lose marks for selecting an incorrect condition.
The Coolidge Corporation is the only producer of a particular type of laser. The demand curve for its product is: Q = 8,300 -2.1P and it total cost function is TC = 2,200 + 480Q +20Q^2
The short-run total cost curve of a firm in a hypothetical market is given by: STC = 10Q^2 + 4Q + 100 with short-run marginal cost given by: SMC = 20Q + 4 There are 100 firms in the market. Market demand is:Qd = 500 - Pmkt
For a particular good that is monopolized, the monopolist faces the following demand and cost conditions: P= 12 - 2 qd MR= 12-4qd MC= 2 q a) What price will the firm charge its customers b) Will the firm earn positive economic profits
Freedmania is a small society that produces and consumes just two goods: tequila and medicine. The price of tequila and medicine are both $1 per unit, but the marginal utility of medicine is greater than the marginal utility of tequila.
Outline the benefits and problems of introducing a comprehensive scheme of marginal social cost pricing.
What are the most important decisions (price, innovation, advertising and so on) on which the firms compete?
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