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We considered a large manufacturing mo nopolist selling to individual retailing monopolists. Recall that in one parameterization of the problem, there were ten retailers, three of whom faced demand of the form p = 12 - 9x , five of whom faced demand of the form p = 12 - 6x, and two who faced demand of the form p = 12 - 2x . Costs of production and sales were zero. The retailers are price-takers in their dealings with the manufacturing monopolist.
(a) Assume that the manufacturer can tailor a take-it-or-leave-it offer for each individual retailer, of any form desired. To maximize her profits, what should the manufacturer do?
(b) Suppose the manufacturer is compelled by law to make identical offers to all ten retailers, but she can otherwise make take-it-or-leave-it offers, offers with menus where retailers are restricted to taking only one item from the menu, and so on. What is the best the manufacturer can do in this instance?
consider the table below for the neighboring nations of northland and west coast. the table lists the maximum feasible
Illustrate the impact of food stamps worth $100 compared to a $100 cash transfer on Joe's budget set b. Starting this month, Joe would receive food stamps worth $100 per month. How much more food would he buy this month if food on average costs $2..
What if the argument for the relationship between competition and justice was questionable? Are there advantages to a monopoly?
Am I right in saying an isoquant for an output produced using 2 inputs that can be perfectly substituted for each other can be represented by a straight line
A decrease in person's real wage necessarily means
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Explain why purchasing, power, parity (PPP) works better in the long run than in the short run. Your 200 word answer should focus on selecting and organizing your most relevant comments in a coherent fashion.
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . Where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p)
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
The financial budgets include the:
assignment research two periods in history one where the united states experienced an increase in inflation and the
Jake and Paul run a paper company. Each week they need to produce 1,000 reams of paper to ship to their customers. The paper plant's long-run production function is Q = 4 K^0.75 L^0.25, where Q is the number of reams produced, K is the quantity of ca..
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