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A pure monopsony buyer of a resource has a marginal value curve for the resource expressed as: MV = 100 - 0.4Q. Its average expenditure function (and also the market supply function) is: AE = S = 20 + 0.011Q. a. Find the monopsonist's profit maximizing price and quantity. b. Compute the deadweight loss that results when the firm acts to maximize profit (that is, takes advantage of its monopsony power). c. Calculate the index of monopsony power that this firm possesses. d. Calculate the elasticity of supply of the resource.
Design a simple econometric research project
Multiplicative decomposition method
The Australian government administers two programs that affect the market for cigarettes.
Solve the forecast model
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type
Determine when a competitively produced product generates negative externalities in production, the industry will,
Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.
M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.
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