Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose the ABC chemical company discovers a drug that cures the common cold. ABC has plants in Europe and in the United States and can produce the drug in either continent at a marginal cost of 10. There are no fixed costs. Where P = price, Q = quantity and subscripts E and U refer to Europe and the US respectively, the firm faces the following demand curves in the two continents: Europe: QE=70-PE US: QU=110-PU 1. Assuming that the firm is a profit maximiser and that it can engage in third degree price discrimination, what price will it charge in each continent? Explain the intuition of the result.
2. What profits does it earn?
3. Now assume that the governments of the two continents agree to forbid price discrimination on the basis that it harms consumers. ABC must now charge a single price, the same in Europe and the US. What price will it choose? What profits will it earn? (Hint: because there is a single price, you need to consider the demand curve for the total market, Europe plus the US).
4. Who gains and who loses when price discrimination is forbidden?
Calculate the marginal cost and marginal analysis for the following table. Calculate the answers and insert them into the shaded cells. Units Produces Cost per Unit Total Cost Ma
What is the amount of five equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $1500 is made at the end of year six and subsequent withdrawa
Suppose you have the following information about a closed economy: C = 50 + 0.80 (Y-T) I = 200 G = 100 a) Find out the equilibrium level of income. b) Suppose G in
COMBINED ISLM MODEL
REASONS TO NATIONALISE SARB
Use a diagram of the open economy model (e.g. fig 32.4 from the text) to illustrate and explain the effect of the following event on the market for loanable funds, the level of net
The project has been split into four main chapters; literature review, data and methodology, results and a conclusion. The appendix contains the estimated tables and graphs, of whi
According to Keynes, the economy could become stuck at a low income level if: A. aggregate demand and aggregate supply are independent of one another. B. declines in aggregate dema
Consider the following model of an economy that begins in a macro equilibrium,
There are three firms in an economy: A, B, and C. Firm A buys $450 worth of goods from firm B and $260 worth of goods from firm C, and produces 260 units of output, which it sells
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd