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Third Degree price discrimination: Assume P1=200-4Q1; P2=100-Q2 and MC=20+0.4Q. Solve for the profit maximizing outputs and prices in each market.
Suppose that the average household in a state consumes 800 gallons of gasoline per year. A 20-cent gasoline tax is introduced, coupled with a $160 annual tax rebate per household. Will the household be better or worse off under the new program?
Find the probability that the investor makes money and receive a dividend.
What is the main goal of policymakers in regards to the business cycle?
Firms that can identify two types of consumers can price-discriminate perfectly. Firms can price-discriminate only if there is zero competition in the market. Firms that price-discriminate will not reach higher profits.
In perfectly competitive market there are few benefits but still more benefits of the PC model pertain to individual choice and Liberty .what historical paradox of social structure does the perfectly competitive equilibrium resolve ?
Suppose that a market is decribed by the following supply and demand equation:
The bottom fell out of the stock market on October 24, 1929, signaling the start of the longest and deepest economic decline in the nation's history.
What is an example of a firm which, one might argue, is experiencing either (a) economies of scale, or alternatively (b) diseconomies of scale. What are the advantages or disadvantages the firm in question seems to receive when its scale of operation..
Unemployment spells and long term unemployment. According to the data presented in this chapter, about 47% of unemployed workers leave unemployment each month. What is the probability that an unemployed worker will still be unemployed after one month..
In response to a prce decrease from 27 to 22 sales qty increases 13200 to 14800 calcuatente absolute value of the price elasticity of demand.
Assuming an upward-sloping AS curve, if an economy is at full employment and investment spending decreases while all other levels of spending remaining constant, then the price level
Globalization refers to the increasing economic interdependence of countries with trade, it also refers to a rise in cultural exchange. It also refers to knowledge, information, people, across international borders. Whether we like it or not just lik..
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