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Using a spreadsheet like the following, entering formulas for the total revenue and consumerâ€TMs surplus, and given the following demand curve of a consumer for a monopolistâ€TMs product Q=14-2P (a) find the total revenue of the monopolist when it sells 6 units of the commodity without practicing any form of price discrimination What is the value of the consumersâ€TM surplus? (b) What would be the total revenue of the monopolist if it practiced first-degree price discrimination? How much would the consumersâ€TM surplus be in this case? (c) What if the monopolist charged P= $5.50 for the first 3 units of the commodity and P= $4 for the next 3 unitsâ€"What type of price discriminiation is this?
Graphically illustrate the total surplus associated with 2 randomly chosen quantities in the market (put this on two separate diagrams).
Assume re are three possible policies, X, Y and Z, person 1 prefers X to Y to Z and person 2 prefers Z to Y to X. Model this situation as an extensive game and find out its Nash equilibrium
Draw the isoquants for coffee production. Write down a mathematical expression for the production function for coffee.
If ABC adds an assembly line for the product and XYZ does not follow with a competitive product.
Illustrate what is the effect on equilibrium price and quantity in the market for oranges if a new orange picking machine is developed.
Explain how businesses create value by integrating the production and distribution of goods, services, and information.
For what type of goods does law of one price hold quite well. Since PPP rarely holds at any point in time, is re any substantive meaning to terms overvalued or undervalued currency.
The U.S. cigarette organization has negotiated with Congress also government agencies to settle liability claims against it.
State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads.
Why is it often difficult to develop a realistic analysis?
Elucidate however, in checking with government economists, Hanna finds that every capita disposable income is expected to rise.
A recent study indicates to the long-run average cost curve for cellular telecom companies are basically flat. Illustrate what do you expect to happen to industry output.
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