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Based on market research, a film production company obtains the following information about the demand and production costs of its new DVD:
Demand: P = 1,000 -10Q
Total Revenue: TR =1,000Q 10Q^2
Marginal Revenue: MR =1,000- 20Q
Marginal Cost: MC=100 10Q
Where Q indicates the number of copies sold and P is the price in dollars. a. Find the price and quantity that maximizes the company’s profit. b. Find the price and quantity that would maximize social welfare (the competitive equilibrium). c. Calculate the deadweight loss from monopoly.
Net social benefits are maximized when:
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Sally quit her job as a CFO where she was earning $50,000 per year to start her own financial consulting firm. She converts a building that she owns, which was previously rented for $12,000 per year, into an office.
An outflow of official reserve assets would be recorded as a
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Producer surplus is the...
Consider a small open economy in the short run where the government imposes trade tariffs on corn. Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output? Under which regime does the money supply increase..
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