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Question: Suppose that there are two goods with demand functions Qi= 1-biPi, i=1,2. b1=1 and b2=0.5.
There are no variable production costs but there is a common fixed cost equal to 0.72.
(a) Give the equation for the consumer surplus in each market
(b) Suppose that the firm can profit maximize but has to use linear pricing. What price will it choose if it cannot price discriminate? What if it can exercise third degree price discrimination? (group pricing)
(c) How does your answer to (e) change if the firm can use two-part tariffs? The same two part tariff and two two-part tariffs with third degree price discrimination?
What is the difference between relative poverty and absolute poverty and How does Statscan measure each? Under what circumstances is each measure relevant? Explain.
Although there is relatively little dissimilarity in the cost of producing hardcover and paperback books, these books sell for very different prices. Describe this pricing behaviour.
Assume that the demand curve D(p) given below is the market demand for apples: Q = D(p) = 280 - 13p Q= D(p) = 280 - 13p, p > 0.
The rate of our imports and exports has nearly quadrupled during past decade alone. Firms today are hiring, investing, buying, selling, increasing capital overseas among other things
sports authority and modells sporting are engaging into the following one-shot game if sports authority advertises and
Based on resale prices for tickets for the 2013 Super Bowl in New Orleans, face - value prices for the most expensive tickets to the 2014 game are expected.
a study of the costs of electricity generation for a sample of 56 british firms in 1946-1947 yielded the following
Draw representative graphs of the goods market and net-exports. Draw your graphs to illustrate the trade balance at the equilibrium level of output.
Also, assume that the current Federal funds rate is at the 3 percent rate that is targeted by the Fed. Now suppose that the Fed retargets the rate to 1.5 percent. By how much will the quantity of Federal funds have to change for the equilibrium to ..
you have been engaged by central savings and loanassociation to audit its financial statements for the year ended
Suppose you estimate the following simple regression On the basis of the information provided, test whether the slope differs from zero at the 1% level of significance.
Data compiled from individual patient data fields
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