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A monopolist is able to discriminate perfectly among his consumers - by charging a different price to each one. The market demand curve facing him is given by P = 72-Q. His marginal cost is given by MC = 24 and marginal revenue is MR = 72-2Q.
(a) In a diagram, illustrate the profit-maximizing equilibrium, where discrimination is not practiced.
(b) Calculate the equilibrium output if he discriminates perfectly.
(c) If he has no fixed cost beyond the marginal production cost of $24 per unit, calculate his profit in each pricing scenario.
Ball bearings cost $.05 each, and bubblegum costs $.20 each. Your enjoyment of the experiment will be characterized by the utility function U(B,G) = (B^.2) * (G^.8). If you have $10 to spend on this experiment, how many ball bearings will you buy
Which condition will lower the activation energy the most?
The corporation has several personal service contracts with advertising agencies and endorsements for your client in addition to passive income. Propose a plan in which you eliminate the potential for the PHC tax on the client's corporation.
illustrates the demand and supply schedules for television sets in venezuela a small nation that is unable to affect
The starting salaries for full-time jobs for recent graduates in statistics are normally distributed with a mean of $44,000 and a standard deviation of $2,900. If random samples of 25 recent graduates were selected
Given a project planned to cost $12,000 but actual cost to date is $10,000, and the project is only 70% complete, calculate the variances. Should the customer be happy?
Assume the Following IS-LM Model E Expenditure sector Sp = C + I + G + NX C = 110 + (2/3)YD Calculate the equilibrium values of private domestic investment (I), tax revenues (TA), and real money demand (md). How much of private domestic investment (I..
A painter and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your useage of paint drops from 35 gallons a month to 20 gallons a month. Compute the price elasticity of demand for paint and show calculations.
The banking market in Athens, Ohio, currently has four banks with market shares of 60 percent, 20 percent, 15 percent, and 5 percent. The two smallest banks have proposed merging. Under the standard merger guidelines of the Federal Reserve.
Being heavily involved in long-term strategic planning but much less involved in the day-to-day aspects of strategy implementation and execution.
Consider a market served by identical firms with cost funtion C(q)=722+(q^2)/200. The market demand is given by Qd=6500-100P and the short run market supply is given by Qs=1200p. Find the number of firms that will be active in the short run.
The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data.
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