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Use the following table of Consumer willingness to pay to answer questions 13-16. Assume the cost of producing the goods is zero.
Consumer A Consumer B
Good 1 $4500 $5,000
Good 2 $1,500 $1,000
Suppose the monopolist only sold the good separately. What price will the monopolist charge for Good 1 to maximize revenue for Good 1?
Suppose the monopolist only sold the good separately. What price will the monopolist charge for Good 2 to maximize revenues for Good 2?
What is the total profit to the monopolist from selling the goods separately?
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
Suppose the production function for oranges is Q = k^1/3 L^1/3. Suppose the production function for pasta is Q = 4kl. What is the long-run optimal input combination when Q = 16 , r = 4, and w = 36 ? Does this cost function have increasing or decreasi..
The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.
The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the: a)variation not explained b)variation explained c) variation not explained by the regression equattion relative to the variation expl..
Illustrate what might you call an outward shift of a nation's production possibilities frontier.
The two smallest banks have proposed merging. Under the standard merger guidelines of the Federal Reserve and the Justice Department.
Jane uses an online dating service. For each of the following activities say whether Jane is screening or signaling.
A university has a fixed number of parking spaces for students on campus. They are currently sold at a price that clears the market. Suppose there is a proposal that the price should be lowered and a lottery held to determine who may park on campus. ..
Provide recommendations for the following three bullets on General Motors. Please provide sources. The impact of new companies entering the market, mergers, globalization on the market structure, price elasticity of demand, pricing, and the sustainab..
Economists frequently point out that factor movements between two countries can be a substitute for goods movements between the countries in terms of the impact on relative factor prices in the countries. Explain why the two types of movements can be..
He wage elasticity of labor supply for men aged 18-25 is measured to be 0.3. Within this group, the average weekly wage of the high-school graduates is 2/3 the amount of college graduates. If male college graduates offer 45 hours of work per week, wh..
If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from 20 to 21 units of product the: Marginal cost is decreasing. Marginal cost equals average variable cost. Average total cost equals average variable cos..
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