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Which one of the following statements about a monopolist exercising “perfect” price discrimination must be untrue?
A. The firm is able to charge customers the maximum amounts they are willing to pay.
B. The firm is able to prevent resale of the good or service.
C. The demand curve facing the firm is the same as its marginal revenue curve.
D. The monopolist’s average revenue is greater than marginal revenue for all quantities greater than zero.
E. None of the statements in A—D are untrue.
Your consulting company purchased a high powered server (3 year MACRS property) for $100,000. This server is expected to increase productivity of the engineers and designers such that 30,000 per year is saved over its economic life of 5 years. Fifty ..
a profit - maximizing industry in a competitive market is currently producing 100 units of output. Illustrate what is average variable cost.
what will happen in the market for personal computers? How will the equilibrium price and equilibrium quantity of personal computers change?
Consider now an economy where you need to search for a job. Let b be the function of people that do not have a job and are searching for one. Here active population and working age population do not coincide. Write the equation describe the dynamics ..
Production Function Consider a production technology that uses two categories of factor inputs in production. Define K as the amount of capital input, L as the amount of labor input, x as the amount of output. The production function is x = F (K, L) ..
Suppose you are the administrator in charge of setting the toll for crossing a toll bridge across a river. The current toll is $1 per trip and at that toll 1000 trips per hour are taken across the bridge. If the price elasticity of demand for trips i..
Producing less than equilibrium leaves unrealized producer and consumer surplus, and producing more than equilibrium reduces the consumer surplus. Producing more or less than equilibrium results in negative profits, which is inefficient.
The Economy is at full employment. Now the government want to change the composition of demand towards investment and away from consumption, without, however, allowing aggregate demand to go beyond on full employment. What is the required policy mix?..
Compute elasticities of demand and explain briefly for each the relevance of this information in decision-making by the firm. The data has been generated in each case from recent market experience or from test markets.
Using the diagram, suppose that producers need to have licenses to sell apples, and that only 90 units of apples are licensed (i.e. Q is limited to 90). Calculate: the reduction in the consumers’ surplus. the reduction in the producers’ surplus
Provide an overview of the critical components of emerging markets. How is a country's GDP used to analyze and emerging market? Is there a best practice checklist that can be created for analyzing emerging markets? Is it possible to use a best practi..
About John Maynard Keynes. Explain the 4 tenets of the classical position. Consequences of Pease: explain Keynes concerns regarding the Armistice. What did Keynes really mean by “in the long run we are all dead>” Explain how the multiplier can achiev..
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