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it has the same demand curve and there is only one firm there that also produces apples at the marginal cost of $4 per kilo. Also, each firm in every country has to pay a transportation cost of $1 p
(a) Calculate the equilibrium price and quantity of coffee-makers. (b) Draw consumer surplus and calculate its exact value. (c) Draw producer surplus and calculate its exact value. Now assume that Hom
Now assume that Home has started trading with the Foreign country, which is exactly the same: it has the same demand curve and there is only one firm there that also produces apples at the marginal
Suppose Jan and Tina decide to start a small business selling turquoise belts in Miami International Airport. To get into the business they need to invest in a fancy push cart. The price of the push
Suppose GM reduces all of its existing workers from a 50 hour work week to a 40 hour work week but does not lay anyone off or hire anyone new. How will the unemployment rate change as a result
A monopolist sells to a market in which the fraction of buyer types whose valuation is v or less is given by F(v). The lowest valuation customer in the market is a customer with v = k, so we have F(
A producer of hard disk drives for note book computers currently has a factory with two disk-processing machines, which it cannot change in the short run. Each of the machines costs $100 per day (th
university bank a monopoly bans has the following items on its balance sheet, an actual reserve = 1 billion dollars, Demand deposits = 7 billion dollars, reserve requirement is =10. What is the bank
Suppose Always There Wireless serves 100 high-high demand wireless consumers, each of whose monthly demand curve for minutes of wireless service is and 300 low-demand consumers, each of whose monthl
The DOJ does not observe firms costs and therefore assumes that marginal costs are constant and equal to c1, c2, and c3 in the three markets. a. If firms in M2 or M3 are colluding, what price will w
Garland Mills purchased a certain piece of machinery 2 years ago for $500,000. Its present resale value is $380,000. Assuming that the machine's resale value decreases exponentially, what will it be 3
However, this is a short-run analysis where physicians are variable but laboratories are fixed. Suppose that each physician costs $500 per day (for an annual salary of about $175,000) and the daily
Determine the profit maximizing price and quantity. At this price and quantity, calculate this monopoly's economic profits. d) Given this firm's level of economic profits, where must the firm's
A company has fixed costs of $ 28000 and variable costs of 0.4x +222 dollars per unit, where x is the total number of units produced. Also, the selling price of its product is 1250-0.6x dollars per
Suppose that the market for footballs starts in long-run equilibrium. Then, as a result of media coverage of the Soccer World Cup, children in the United States start playing more soccer and less fo
Calculate SRATC, AFC, AVC, and MC when output is q = 20 units per hour. Calculate the output at which SRATC is minimized and SRATC at that output. A cost study has determined the firm's short-run tota
Consider a movie theater as a monopolist. There are two groups of moviegoers, students and non-students. The students' demand function for movie tickets is Qs = 200-20ps,160;and the non-students' de
The amusement park incurs a constant marginal cost of $2 per ride. Suppose, in order to maximize profit, the amusement park practices a two-part tariff. How much will the park charge per ride and wh
Advice for an Unprofitable Firm. You've been hired as an economic consultant by a price-taking firm that produces baseball caps. The firm already has a factory, so it is operating in the short run.
Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pays $6,00
where Q is quantity, p is the price, and A is its level of advertising. Its marginal cost of production is constant at $10, and its cost of a unit of advertising is $1.
Each firm has a marginal cost of $60 per unit. A. What is the Cournot equilibrium B. What is the Stackelberg equilibrium when Firm 1 moves first
A duopoly faces a market demand of p=120-q. Firm 1 has a constant marginal cost of MC1=20. Firm 2's constant marginal cost is MC2=40. Calculate the output of each firm, market output,
the possibility that employer-provided health insurance reduces job mobility-a phenomenon that has been termed job lock. Job lock prevents workers from transitioning to jobs in which their marginal
The only video rental club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P=20-2Q, where P is the rental price ($/day) and Q is the quantity demand