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Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy Commission. The demand function for gas in Zar has been estimated as:
P = 1,000 - 0.2Q
where Q is output (measured in units) and P is price (measured in dollars per unit). Zar Island's cost function is:
TC = 300,000 + 10Q
In the absence of any government price regulation, determine Zar Island's optimal (a) output level, (b) selling price, and (c) total profits.
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A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Calculate the share of total income received by each quintile of this income distribution. Do the top an..
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