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A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 90 - 0.5P, and the marginal cost of production is $110.
a. Determine the optimal number of units to put in a package.
b. How much should the firm charge for this package?
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In 1947 in the United States, nominal GDP was $237 billion and real GDP was $1,771 billion in 2005 dollars. In 2011, nominal GDP was $14,869 billion and real GDP was $13,228 billion (also in 2005 dollars). What were the annual average growth rates of..
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Assume the short-run aggregate supply curve can be expressed algebraically as: Y = 4,500 + 3,000π and the dynamic aggregate demand curve can be written as: Y = 5,000 – 1,000π. Find the numerical value for the short-run inflation rate? Find the numeri..
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