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A pharmaceutical firm has a monopoly on a new class of vasodilator. The market demand is given by P=240-0.01*Q, and thus MR=240-0.02*Q. The monopolist's marginal cost is constant and equal to 20. Calculate the profit-maximizing price.
Suppose the person lives for two periods, U = u(c1) + bu(c2), and can acquire an asset at price q, with c1 = w1 – qa and c2 = (d + q*)a + w2, where d = dividend and q* = selling price.
What does the market for sugary sodas look like? Provide a supply-demand graph with realistic prices.
assume perfect competition. summerland is a small country that takes world price of corn as given. its domestic supply
If the firm must act as a perfect competitor, in the long run what will happen to equilibrium price and equilibrium output? Graph.
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Determine the average inflation rate for this commodity over this two-year period. The CPI for 1995 was 152.4 and for 2010 it was 218.1. What was the average general inflation rate during these years? To calculate the NPW (at year 0) of N annual cash..
Describe the cutthroat competitors reasons for not increasing or decreasing his price, thereby accounting for the kink in his demand curve.
Describe how a firm in a Monopoly market maximizes its profits and minimizes its losses in the short term and in the long term. Can a Monopoly make a profit in the long term?
On Valentines Day, the prices of flowers and chocolate are usually high compared to other times. How do the principles of demand and supply describe the reasoning behind such price increases?
Suppose that after depreciating the device for two years with SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the device's life (the remaining three years). What is the device's VB at ..
Why are theories not cent per cent correct whether in economics, chemistry, or physics? Why is it more so in economics?
question 1explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing
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