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The Electric Company is under review by a state regulatory commission. Relevant revenue and cost curves including a Afair rate of return agreed upon by both the firm and the commission are as follows: P=$85-$0.2Q (Demand) MR=∂TR/∂Q=$85 - $0.4Q (Marginal Revenue) TC =$900 +$20Q + $0.8 Q2 (Total Cost) MC= ∂TC/∂Q=$20 +$1.6Q (Marginal Cost) where P is price (in dollars), Q is output (in thousands of megawatt hours) and TC is total cost (in thousands of dollars). 1. If the firm were operating as a pure monopoly, what would be its optimal price/output solution and level of economic profits? 2. What price should be set if the commission wishes to eliminate economic profits?
what topic or topics of interest have you found at the markkula center?can you apply one two or all three moral
Let px be the price of good X and py be the price of good Y. Assume the income of this individual is strictly larger than 10px Derive the demand for good X and the demand for good Y as functions of the two prices and income.
what assumptions about preferences imply that indifference curves have the bowed-in shape they are assumed to
as you brainstorm the project you begin to think about selecting the members of your team and the expertise that will
consider an economy that produces only two goods fresh apricots and dried apricots. in this economy the technology of
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higher interest rates have an impact on the value of the dollar. what is the effect and how does this relate to foreign
How can the procyclical movement of interest rates(rising during expansions and falling during contractions) lead toa procyclical movement in the money supply as a result of Feddiscounting Why might this movement of the money supply beundesirable
The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).
Assume that the annual demand function for a popular model of a scientific calculator is give by p =d(q)=0.01q^2-24q+144 when the price p
each individual determinant analyzed for your situation with examples applicable to your situation and research 3
Entrepreneurship is a factor of production which adds value to the production process and therefore earns a legitimate return to its exertion. How would you evaluate these two contrasting views, and what are their implications for society?
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