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The Commonwealth of Pennsylvania is the monopoly retailer of wine in that state. Suppose that Quaker Cabernet has no close substitutes and that the statewide inverse demand function for this wine is p = 5 - 0.001Q. The state purchases the wine on the wholesale market for $ 2 per bottle, and the state-operated liquor stores incur no other expenses to sell this wine.
a) What are the state's profit- maximizing price and quantity?
b) Neighboring New Jersey permits private retailers to sell wine. They face the same statewide demand curve as in Pennsylvania. No interstate wine trade is permitted. Suppose the New Jersey market for Quaker Cabernet is perfectly competitive. What are the equilibrium price and quantity?
c) New Jersey taxes wine sales. While the retailers pay the taxes on wine sales, they may pass on some or all of these taxes to consumers by raising prices. Identify the specific tax (tax per bottle sold) for which New Jersey's equilibrium market price and quantity equal the Pennsylvania monopoly price and quantity. Given the quantity tax, show that New Jersey's tax revenue equals Pennsylvania's profit.
GBA334- Assume December has an average temperature of 45 degrees and the heater is 2 years old with insulation that is 6 inches thick. What is the forecasted monthly electric bill?
situational variablesplease help with the following. please answer in detail with at least 200 words. this information
At ABC Manufacturing, the process of turning ideas into products/methods that can increase profits would be called which of these?
Make sure that you put comments into the code for each class with your name, the class number and name, Week 8 project, date, and my name." Please have a nice, readable format for your work. Separate the different files and output neatly so that I..
Classify a potential capital project for Wal-Mart also discuss both the estimates of the initial investments also the annual incremental after tax cash flow which is expected to emanate from the investment.
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Calculate the estimate of the overall proportion (p) of the population that prefer dogs over cats that is to be used in calculating the test statistic. Give your answer as a decimal to 2 decimal places
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The type of inspection she is performing is:
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