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Perfect Price Discrimination by a Monopolist
The demand for a good X in a town is Q = 10 − P , where P is the price of good X per pound and Q is the quantity demanded in pounds. The marginal cost of producing the good is $2 per pound. There is no fixed cost of producing the good. There is only one firm, Abe, who can produce the good. Abe can perfectly price discriminate. Rather than naming the price for each quantity sold, Abe uses two-part tariff that names a per-unit price and a fixed-fee to maximize his profit.
What are the per-unit price and the fixed fee in his optimal two-part tariff?
How much do consumers demand under the optimal two-part tariff?
How much are the consumer surplus, the producer surplus, and the aggregate surplus under optimal two-part tariff?
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q1. where does the national unemployment rate stand relative to the natural rate of unemployment? you can visit the
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Suppose you are given the following Total Product Function: Q=100K^3/2 L^4/2 M^4/7,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Discuss the returns to scale.
Net income=5,000, depreciation=2,500, increase in deferred tax liabilities=500, decrease in accounts receivables=2,000, increase in inventories=9,000, decrease in accounts payable=5,000, increase in liabilities=1,000, increase in property & equipment..
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Bell company has stock outstanding as follows, $10 par per share, 140000 shares, preferred 5%, 100 par per share, 8000 shares.
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