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Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 18 - QA, and the inverse demand curve for group B is PB = 10 - QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 2, and the monopolist has no fixed costs. If the monopolist is able to practice group price discrimination, what would be the values of the elasticities of the two groups at the profit maximizing prices?
Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate (besides any mentioned in the text). Select an economic phenomenon and determine which of the models d..
In a nation with no inflation, the central bank raises the money supply by 6%, and each dollar is spent 1% more than it was before. From this we know:
The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulting economic events or activity will usually change. Listed below are severa..
International trade has pros and cons. Economists generally support free trade. International trade has played a significant part in promoting economic development and technology transfer among countries.
Starting from a long run equilibrium, trace the effects for both a competitive firm and the market of a permanent reduction in market demand for: Consider two consumers, John and Maria, each with an quantity of two goods: corn and sug
Given a Cobb- Douglas production function (follow the Appendix 3.2 to the chapter for further detail and practice) Write down important assumptions of Solow growth model. What is the steady state capital per capita, k*, and explain about it.
If a country has a current account deficit, this is often referred to as a situation where the country is “spending beyond its means.” What does this phrase mean in terms of the simple Keynesian model? Does the existence of the current account defici..
A relationship with a minimum ________.
Decision makers expect a 6% increase in the money supply; the actual increase is 3%.What is the current price level?
Does the production technology exhibit increasing/decreasing/constant returns to scale.
What are key differences between ontological, teleological and cosmological arguments. Identify philosopher who you think best supports his or her argument. Explain your answer briefly.
Have you seen signs of prejudice and discrimination directed in any countries you have visited? What do you think is the origin of the term “gyp” meaning “to cheat?” Do you think polygamy, which is legal in all but two nations in Africa, puts women a..
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