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The market for DVD rentals in Dallas, Texas, is estimated to be P= 10-0.002Q. Marginal cost (MC) of rental is equal to $2. Where PD is the price (per DVD in $) for DVD QD is quantity of weekly rental. The marginal revenue (MR) for rental is equal to MR= 20- 0.004QD
The equilibrium weekly rental is equal to
Equilibrium price of DVD rental
Equilibrium profits from DVD sales
A monopolist faces the following demand curve: P = 120 - .02Q . The firms cost function is given by C = 60Q + 25; 000: Assume that the firm maximizes prots. What is the level of production, price, and total profit per week? What will be the level of ..
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q1. suppose we have two economies- lets call them earth and mars- that are identical except that one begins with a
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