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The firm"s estimate of demand for the product is P = 20 - 3 (Q1 + Q2 ). How much should the firm plan to produce in each plant? At what price should it plan to sell the product? 4. Suppose that the market demand curve for a new drug, Adipose-Off, designed to painlessly reduce body fat, is given the equation P = 100 - 2Q, where P is the price in dollars per dose. Suppose also that there is a single supplier of the drug who faces a marginal cost, as well as average cost, of producing the drug equal to a constant $20 per dose. (a) What are the monopolist"s profit maximizing output and price? What is the resulting deadweight loss relative to the competitive outcome? (b) Suppose the government levies a specific tax of $5 per dose on the monopolist. What would happen to the monopolist"s profit maximizing output and price? What would happen to consumer and producer surplus? Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome? (c) Suppose the g
In customer theory there are some useful analytic results that can come from studying homothetic utility functions of consumption for each.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
The consumption of both x1 also x2. Label income also substitution effects for both goods. Illustrate what is the implication of product differentiation in defining market structure.
The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water.
Assume in this country they save 20% of their income, population grows at 3% every year also depreciation of capital occurs at 10% every year.
describe briefly how consumers and incumbent firms are influenced by these externalities.
Show how each of the following would initially affect a bank's assets and liabilities.
As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee
Illustrate what is the equilibrium cost of a car stereo also illustrate what is the equilibrium quantity of car stereos per day.
Illustrate what greens fee should the operator set on weekday also Elucidate how many rounds will be played n the weekends.
Write down an expression describing total income from tickets plus popcorn plus other concessions. Forecast total incomes for regular also special Tuesday-night pricing.
What do you imagine about the interest on payday loans is too high or just right.
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