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Consider a situation where a monopolist faces the foloowing inverse demand curve, p = 240 - 2q and constant marginal costs of MC = 40. Suppose that a regulator imposed a price ceiling on the monopolist of p = MC = 40.
- Suppose the regulator was susceptible to a bribe. For $500, the regulator will "make a mistake" in calculating the price ceiling for the monopolist, causting the price ceiling to be p = MC + 20 = 60. Would this bribe be worth it for the monopolist? Why or why not?
- For every $500 the monopolist gives the regulator, the regulator will raise the price of the price ceiling by $20. How much of a bribe should the monopolist give to the regulator?
Alvin’s demand for a product is QdA=10-P and Betty’s demand is QdB=5-P. Calculate Alvin and Betty’s marginal and total willingness to pay for 4 units of consumption of this product. Explain it graphically. Derive the aggregate demand function. What i..
In the market for widgets, two firms sell identical products, compete by choosing the price at which they sell their product, and choose their prices at the same time. What will the equilibrium price and quantity be relative to what would occur if th..
Utilizing the preceding write equations for total cost, average cost, and average variable cost.
what about Bill Maxwell article
equity capital is usually less expensive to corporations than dept capital. capital structure is optimal when all sources of capital provide equal funds. debt capital is usually less expensive to corporations than equity capital..most companies use p..
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.
Elucidate the law of demand. Why does a demand curve slope downward. How is a market demand curve derived from individual demand curves.
Explain how you would go about determining what are the potential harms and potential benefits of disclosing this information voluntarily Is there any information you feel cannot be included in the evaluation? What is it? Why can’t you include it?
In principle, the government could impose separate minimum wages on distinct occupations. Suppose the government imposed a minimum wage of 20 percent over their respective market wages for ditch-diggers and university professors.
Competitive firms will always try to earn more than a normal profit by doing the following, except
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.
Transaction cost is:
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