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Suppose that the (inverse) market demand curve for a new drug, Adipose-Off, designed to painlessly reduce body fat, is represented by the equation P=100-2Q, where P is the price in dollars per dose and Q is the annual output. (The marginal revenue curve is thus given by the equation MR=100-4Q). Suppose also that there is a single supplier of the drug who faces a marginal cost, as well as average cost, of producing the drug, equal to a constant $20 per dose. What are the monopolist's profit-maximizing output and price? What is the resulting deadweight loss relative to the competitive outcome?
Compute the Lerner Index for the monopoly described in the question above.
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
Forestry products account for nearly 3 percent (%) of Canada's GDP also 14.1 percent of its exports.
Does either player have a dominant approach Does either have a dominated approach. Explain.
Consider a couple's decision about how many children to have.Assume that over a lifetime a couple has 200000 hours of time either work or raise children.The wage is RM10 per hour.Raising a child takes 20000 hours of time.
Explain why Paul Collier seems to argue that export oriented industrialization or trade liberalization policies enacted by African countries would not help Africa develop.
If Professor P chooses x and s to maximize her utility subject to the constraint that Mr. A is willing to work.
What factors will contribute to the riskiness of these bonds.
One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move.
How many Argentine pesos would it cost given the new exchange rate you just calculated.
The constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy.
Describe why this does not represent a violation of the law of demand. Which of the subsequent best explains illustrate what a forward contract.
Fifty years later, the federal resources for public education shows approximately 10% of the public education budget.
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