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Consider a monopolist with constant marginal cost c(c<1) which faces the following demand function Q(p,A)=1+A^(1/2)-p where A is the advertising expenditure and p is a relevant price.
(a) Derive the monopolist's optimal price and advertising expenditure. Be sure that your answers should be a function of exogenous parameters (here c).
(b) Find the price elasticity of demand and the advertising elasticity of demand at (p*,A*)
Assume that in addition to policy action described above, Fed decides to sell a massive amount of Treasury bonds from open market. Elucidate in detail effect of this policy action on size of money supply.
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The price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8. At a price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year. If per capita income increases to $20,500, what..
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For the federal deficit to be lowered,
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Do you feel that relational database developers put more emphasis on user acceptance than they do on functionality of the database and the DBMS?
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