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Q. The husband of Miss Young is a monopolist with constant marginal costs of $50 that can sell to three groups of potential consumers including demands Q1=800-0.2p, Q2=400-p and Q3=700-0.4p respectively.
(i) Find out the optimal price-quantity if the firm is not able to price discriminate.
(ii) Find out the optimal price-quantity if the firm can price discriminate but cannot charge a two part tariff.
(iii) Now assume that it is possible to distinguish consumer types one and two and there are no consumers of type three and the firm can charge a two part tariff. Illustrate what would the optimal pricing strategy look like?
If more foreign tourists visited the United States, this would: A. lower our merchandise trade imbalance. B. lower our overall trade imbalance. C. raise our merchandise trade imbalance. D. raise our overall trade imbalance.
Suppose individuals require a certain level of food (x) to remain alive. Let this amount be given by X0. Once X0 is purchased, individuals obtain utility from food and other goods (y) of the form.
Would a typical hedger be willing to pay a risk premium in order to hedge by buying foreign currency forward.
suppose that an economy consumes all salary income and saves all capital income. Describe if the factors of production earn their marginal product.
The alternative is to tie bonus pay to some absolute measure of performance. Discuss the merits as well as drawbacks of each approach.
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part 1 truefalse questions. explain your answer fully.1. the risk treatment in the bene.t-cost analysis assumes risk
when it comes to global expansion and setting up affiliates aboard how is a service companys focus different from that
Illustrate what is the quantity of burgers demanded in equilibrium.
Peggy Sue's cookies are the best in world, or so I hear. She has been offered a job through Cookie Monster, Inc., to come to work for them at $125,000 per year.
Discuss this week's objectives with your team. Include the topics you feel comfortable with, any topics you struggled with, and how the topics relate to your field.
If the company issues debt to finance the project what would be the value of the company. What would be the value of the levered equiy.
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