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1. Uniform Pricing Monopolist
Given an inverse demand function: P = a - bQ; where a = 170, b = 1, and the short-run cost function is C(Q) = eQ + f, where e = 30 and f = 200, if the monopolist is maximizing profit:
Solve for Q*, P*, TR, MR, total cost, MC, profit, price elasticity of demand, consumer surplus and producer surplus.
Vera is an impoverished graduate student who as only $100 a month to spend on food-Explain why Vera's preferences are of a very special type here. How would you graph them?
c 200 0.8y - twhere c consumption expenditure i investment g government expenditure y ntional expenditure t
A perfectly competitive firm faces a market price of $10 for its output X. It own two plants, A and B whose total costs are
Assume the corporate income tax were eliminated and revenue lost was made up through rising the payroll tax rate on labor earnings.
The U.S faces an unwelcome combination of looming recession and persistent inflation that is reviving angst about stagflation, a condition not seen since the 1970s
Calculate the marginal revenue product for each add. unit of labor of output sell $3
Peterson has just completed his study from college and is now a junior member of the staff of a United State senator. He has been asked to draft a statement detailing the senator's position on the economic growth implications of immigration
If Ron is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ron would view working hard as a "personal cost" valued at $1000. What fixed percentage of the profits should you offer Ron? Assume Ron ca..
What is the equilibrium level of income and derive the savings function and find the level of savings in this economy
Suppose the airline is offered $4,000 per week to haul freight along the route for a local firm. This will mean replacing one of the weekly passenger flights with a freight flight (at the same operating cost).
The Company IIE Inc. is considering upgrading their distribution center (DC) and have received investment proposal from four different vendors. The budget limitation for the investment is $1 million. The investment proposals are listed in Table 1...
Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determina..
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