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Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first market is Q1=100-0.5P1, where P1 is the price of the product and Q1 is the amount sold in the market. In the seconds market, the demand is Q2=140-P2, where P2 is the price of the product and Q2 is the amount sold in the market. The firm's overall marginal cost is MC=20+Q1+Q2. What price(s) should the firm charge in these markets? What will be firm's profit?
A quality control inspector chooses a part to be tested. The part is then declared acceptable, repairable, or scrapped. Then another part is tested.
A particular segment of the medical device industry is dominated by a handful of firms. These firms have combined into an effective cartel. All firms in the cartel have the same cost structure with zero fixed costs and each has constant marginal c..
A security analyst specializing in stocks of motion picture industry the relation in number of movie theater tickets sold in December and the annual level of earnings in motion picture industry.
elizabeth M. suburbs makes $200 a week at her summer job and spends her entire weekly income on running shoes and designer jeans, because these are the only two items that provide utility to her. Furthermore, Elizabeth insists that for every pair ..
initially he makes a down payment of $6,000 on a $15,000 car. The balance is paid in 24 equal monthly payments with annual interest at 12%. When he has made the last payment on the loan, he trades in the 2-year old car for $6,000 on a new $15,000 ..
Alex and Barbara will simultaneously choose to go to the beach or to go cycling without talking to one another. Alex prefers beach and Barbara prefers cycling, but they prefer to be with one another.
suppose y1 y2 ... y100 are a sample of 100 independent and identically distributed random variables with a mean of 0
Jason's utility from consuming apricots and bananas is given byU(a,b)=2a+3b. Suppose Jason will spend $10 on fruit. If the pricesare pA=1 and pB=2, what is his optimal consumption of apricots and bananas
The equipment has been depreciated using MACRS with a GDS property class of 7 years. The state in which the firm operates imposes a 10% corporate income tax. The firm has federal taxable income in the $10,000,000 to $15,000,000 bracket
Assume that the government at Home decided to use the import tariff of $100. Calculate the new world price, the new imported quantity and the tariff revenues collected by the government.
Money can be deposited at 6% compounded quarterly. What end-of-quarter deposit must be made from the son's third birthday to his 18th birthday to provide $60,000 on each birthday from the 18th to the 21st.
were chosen at random, and the traffic lights of those intersections were modified. The numbers of minor accidents during a six-month period before and after the modifications were: NUMBER OF ACCIDENTS
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