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A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist do to maximize profits?
why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchises
The Babylonians studied problems which lead to simultaneous linear equations and some of these are preserved in clay tablets which survive. For example a tablet dating from around 300 BC contains the following problem:
Current concerns stem from the fear that if medicare remains an open ended program, its share of the federal budge will continue to increase over time. Prepare a brief memo examining "a freeze in physicians' fees and a requirement of mandatory ass..
what is the basis of the kinked-demand model? explain the reason for the gap in the oligopolists marginal-revenue
Which of these four scenarios are most important today? Your answer may include more than one scenario.
How much should the retailer set the camera price at in order to maximize his own profit and what is the most logical explanation to what may have happened assuming that both companies kept doing business afterwards as usual?
Suppose the formerly competing ?rms in question 3 form an employers' association that hires labour as a monopsonist would. Describe verbally the effect on wage rates and employment. showing the monopsonistic wage rate and employment level as W2an..
Numerous studies have shown that there is usually a systematic relationship between price and concentration. What is this relationship? Offer two brief explanations for this relationship.
How might you determine whether compact discs and restaurant meals are in competition with each other and interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior;
If we modify our basic three sector model and instead of assuming that taxes are autonomous or fixed in amount (the Tx = Txo assumption) now assume that taxes are a positive function of income, will this modification have the effect of increasing, de..
Analyze the three different money models the ATM model of the models (the ATM model of demand for cash, the liquidity-preference model, and the dynamic model of money) to determine which model seems most appropriate for explaining the way money wo..
When third parties are intentionally or unintentionally affected by the market activity of others, it is called a negative public good.
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