Reference no: EM13317434
4. What are the incentives to innovate for a monopoly firm as compared with a firm in a competitive market if patent protection is not available?
6. The industry demand function for bulk plastic is represented by the following equation:
P= 800 20Q
Where Q represents millions of pounds of plastic
The total cost function for the industry, exclusive of a required return on invested capital is
TC = 300 + 500Q + 10Q2
Where Q represents millions of pounds of plastic
a. If this industry acts like a monopolist in the determination of price and out-put compute the profit-maximizing level of price and output
b. Assume that this industry is composed of many (500) small firms, such that the demand function facing any individual firm is
P = $620
Compute the profit-maximizing level of price and output under these conditions (the industry s total cost function remains unchanged)
9. Branding Iron Products a specialty steel fabricator operates a plant in the town of West Star, Texas. The Town has grown rapidly because of recent discoveries of oil and gas in the area. Many of the new residents have expressed concern at the amount of pollution (primarily particulate matter in the air and waste water in the towns river) emitted by Branding Iron. Three proposals have been made to remedy the problem
A. impose a tax on the amount of particulate matter and the amount of waste water emitted by the firm
B. prohibit pollution by the firm
C. Offer tax incentives to the firm to clean up its production processes.
Evaluate each of these alternatives from the perspectives of economic efficiency, equity and likely long term impact on the firm
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Disinflation refers to a situation where
: Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?
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Use of mobile devices and the growth of the internet
: Students are required to write an academic report as per the format outlined in chapter 5 of the textbook. The report must follow Harvard citation and referencing guidelines.
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When adding labor or other factors of production
: What are two ways for a competitive firm to determine the optimal level of production, that is, the level of production that will maximize profit or minimize losses?
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The market is said to be in equilibrium when
: By specializing in the production of one good, a company is able to benefit from economies of scale which increases its revenue. Which of the following is an attribute of specialization?
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Branding iron products a specialty steel fabricator
: Branding Iron Products a specialty steel fabricator operates a plant in the town of West Star, Texas. The Town has grown rapidly because of recent discoveries of oil and gas in the area. Many of the new residents have expressed concern at the amount ..
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New equilibrium point by drawing an additional indifference
: Copy the budget line and indifference curve I2 on your answer sheet. Suppose the prices of good X decrease by $2 per unit. Sketch (as accurately as you can) the new budget line in the diagram and indicate the new equilibrium point by drawing an addit..
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Which statement is not true regarding risk
: Which statement is not true regarding risk? the expected return is usually not the same as the actual return a key to assess risk is determining how much risk an investment adds to a portfolio some risks can not be decreased or mitigated by the fina..
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Derive an expression for the inverse demand curve
: If the cost of producing Newton’s Donuts is constant at $0.15 per donut, should they reduce the price and thereafter, sell more donuts (assuming profit maximization is the company’s goal)?
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Draw the cheese market for the united states showing the
: Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price?
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