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Suppose that a monopolist seller of spreadsheet and word processor programs faces four types of consumers, A-D. The willingness to pay for a spreadsheet is $0 for types A and B, and $100 for types C and D. The willingness to pay for a word processor is $0 for types A and C, and $100 for ty-pes B and D. The marginal cost of producing either good is zero. There are 1,000 consumers of each type. Compare the profits from selling the two goods separately and selling them as a bundle. Which is more profitable?
Imagine that you are a lobbyist for timber, an established industry suffering from low-priced foreign competition, and you are trying to get Congress to pass trade restrictions. Which two or three of the five arguments do you think would be most pers..
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate.
Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company's revenues and profits from an individual drug once it loses its patent protection.
Consider a static (one-period), closed economy with one representative consumer, one representative firm, and a government. The level of capital K and government expenditures G in the economy are both fixed exogenously. Formally define a competitive ..
What is a one invention that had good impact on the international economy and why. What were the impacts of this invention were impact good or bad.
q1. which of the following is true? the price elasticity of demand for royal crown cola is equal to the price
Which of the following tools has not yet been used to constrain growth in hospital costs? Economies of scale. Payments to hospitals from private insurers can be characterized as having reached which stage of a typical financial reimbursement cycle? ..
During the past year, gasoline prices have been very volatile. One reason given for at least some of the volatility is the threat of war between Israel and Iran. More recently, there has been a report of serious fire damage to Venezuela's largest ref..
q1. do protectionist policies benefit producers consumers workers or the government? explain. explain how the buy
Suppose the restaurant industry is perfectly competitive. All producers have identical cost curves and the industry is currently in long-run equilibrium, with each producer producing at its minimum long-run average total cost of $8.
Consider a monopolist with the following demand curve: P=200-2Q. The monopolist faces MCm=ACm=20. Solve for the profit-maximizing level of monolopy output, price, and profit.
Suppose that Second Republic Bank currently has $150,000 in demand deposits and $97,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%.
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