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A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer -there are 30 of them- has a demand curve given by Q = 20 - P, while each type II customer -there are 50 of them- has a demand curve given by Q = 15 - P. The firm's marginal cost is constant and equal to $5. Suppose the firm wants to use a two-part pricing strategy (T; P), and it has decided to set P = $5 (we know this need not be optimal, but this is what the firm has decided to set). With P= $5, the profit-maximizing T is
How much deadweight loss does Great Reception causes when it restricts output and charges a price above marginal cost.
Suppose that Omar’s marginal utility for cups of coffee is constant at 3.5 utile per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..
Find the total industry output and the number of firms in the market. How much economic profit does each firm in this market make?
Suppose that Italy and Germany both produce fish and wine. Italy's opportunity cost of producing a bottle of wine is 4 pounds of fish while Germany's opportunity cost of producing a bottle of wine is 9 pounds of fish. By comparing the opportunity cos..
In the futures market, marking to market is a process that: A. Involves a transfer of risk. B. Always requires the sellers of contracts to transfer funds to the buyers of contracts. C. Buyers and sellers can request for an additional fee when the con..
Elucidate how much did Chinese purchases of financial also real assets abroad exceed foreign purchases of Chinese financial also real assests.
Consider an economy with a money demand curve given by Dm = 10,000 – 4000r. If the money supply in the economy (Sm) is 6,000, then what is the equilibrium interest rate and quantity of money? If (gross) investment demand is given by ID = 20,000 – 200..
Suppose that an economy in year t can be described by the following three equations: What is the natural rate of unemployment for this economy in year t? Suppose that in year t-1 and year t the unemployment rate is equal to the natural rate and that ..
Agoira moves from a command system to a market system. Number of markets with shortages _____ (Increases, Decreases, No Change)
take a country named konowland that has an electoral college system. suppose there are nine small states in konowland
What would happen if suppliers charge less than the equilibrium price for your good or service.
According to the quantity theory, money in the long run affects: If the Fed increased the supply of money, and velocity remains unchanged, according to the quantity equation: The velocity of money is: The quantity theory of money states that: In a co..
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