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Brian and Julie are the only people in town that like apple pie. Brian's demand is given by the equation P = 10 - 2Q, and Julie's demand is P = 10 - Q. 41
a. What is the total town demand?
b. Suppose Eric moves to town. His demand is given by the equation P = 10 - 3Q. Now what is the total demand?
q. use the subsequent demand schedule to determine total also marginal revenues for each possible level of
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
The market allows for proportional representation of minorities, but minorities must yield to the views of the majority when activities are undertaken through government.” In your own words, explain the meaning of this statement. Is the statement ..
Under dividend-discount model stock prices: The difference in the price of a zero coupon bond and a coupon bond with the same face value and maturity are simply: To reduce overall portfolio risk through diversification,
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
Discuss " Institutional changes in developing countries have been slow and despite the flurry of modern technologies in recent years the impact is modest and behaviors continue to be driven by old traditions"
Assume the interest rate is 5% per year and a business expects to earn 50,000 dollars in profits at the end of each year forever. What is the value of the business?
Again, in the consumption savings model, assume that lump-sum taxes are zero. But suppose the government taxes on interest earnings. I.e. borrowers face interest rate r while the lenders face an interest rate (1 - t)r. What is the effect of introduci..
A monopolist faces a demand curve given by P=105-3Q P is price, Q is quantity demanded. Marginal cost of production is $15.00. No fixed costs. Explaim how much output in order to maximize profit.
Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.
Which of the following best illustrates the mutual interdependence among firms in the airline industry?
Felix chooses between clothing, q1, and food, q2. his initial income is $1000 a month, p1=100 and p2=10. at his initial bundle he consumes q1=2 and q2=80. Later, his income rises to $1200 and the price of clothing rises to p1=150, but the price of fo..
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