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A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both markets (marginal cost is also equal to average total cost). The inverse demand curve in each market is as follows: Pe=450-.5Qe Pw=700-Qw a) Find the profit-maximizing quantity, price, and profit in each market. b) In which market is demand more elastic? c) Show what will happen to the monopolist’s profit if it is to charge the same price in both markets (that is, profit if the monopolist treats the markets as if they are the same).
Suppose you have a firm that faces a %50 tax rate. Suppose you have an increase in operating revenue of $25000 and an increase in operating expense of $30000, what is your change in net cash flow?
Illustrate what is the expected value of the future share price? b. Sharon buys a ticket in a small lottery.
Carmen's preferences are such that she is always indifferent between watching two movies or seeing one basketball game. Suppose that Carmen has an income of $90. If a movie costs $10, and a basketball game costs $18, what will Carmen's optimal consum..
A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. If real GDP per perso..
Suppose you manage a wine cellar with fixed storage space and you have to choose when to sell each bottle of wine. The value of each bottle V(t) is increasing over time at a decreasing rate: V' (t) > 0 and V'' (t)
Using an aggregate demand and supply diagram, explain how each of the following scenarios affects the equilibrium price level and aggregate output. Consider first the short-run, then the long-run equilibrium for each scenario.
As conditions in short term financial markets improved by summer of 2009 the Fed closed down its lending under these programs. However, throughout the next 4 years the Fed increased substantially its purchases of longer term mortgage backed securitie..
Assume you have just been assigned to a project risk team composed of five members. Your task, as project manager, is to develop a process for handling risks to the project. Because this is the first time your organization has formally set up a risk ..
Describe the factors that influence the reliability of time-series forecasts. Under what circumstances would a time-series model offer a fairly reliable forecast?
Political participation is the bedrock of representative democracy. What are some of the major forms of political participation afforded to US citizens? Compare and contrast (similarities and differences) the forms of participation and strategies use..
Assume there are two groups in the population, and each contributes equally to the cost of the project, but two-thirds of the benefits accrue to the richer group. How this alter the cost-benefit calculation?
1. explain why work done at home is not incorporated however housing services that are also done at home are
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