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Under patent protection, a firm has a monopoly in the production of a high-tech component. Market demand is estimated to be: P = 100 - 0.2Q. The firm's economic costs are given by: AC = MC = $60 per
Suppose that 3 countries who form a cartel agreed to divide the oil market equally. Demand for oil is given by P=50-.1Q where P is the price of oil in dollars per barrel and Q is the Quantity in tho
Suppose that demand for cartel's oil is given by P=50-.1Q where P is the price per barrel and Q is the quantity produced in barrels. If the cartel's aggregate marginal cost is given by MC= 10+0.2Q w
Find the cost of equity financing for common stock for the following information Dividend in year 1 = $8, growth = 6%, floatation costs percentage of stock price = 11.4%, and the current stock p
A monopolist serves a market in which the demand is P=120-2Q. It has a fixed cost of 300. Its marginal cost is 10 for the first 15 units (MC=10 when 0<Q<15). If it wants to produce more than 1
If price of motor vehicles rises, what will happen to the demand of fuel oil In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles
In city A, the value of an apartment falls in direct proportion to its distance from the business center. Thus an apartment one kilometer away will lose 20 percent of its value and an apt 2 kilomete
There are two players i = 1,2. Each player announces a number xi ? {0, 1, 2,...,10}g and the announcement is done simultaneously. The one who says lower number wins. If the player wins, he gets 1$,
A small nation of ten people idolizes the TV show American Idol. All they produce and consume are karaoke machines and CDs, in the following amounts a. Using a method similar to the consumer price i
After the firm's patent expires, predict the new market output and price. (Assume that competing suppliers have the same economic costs as the original producer.) Compute the resulting change in con
Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by
All costs are given in thousands of dollars and negligible salvage values are assumed at the end of a 50-year life. Using a social interest rate of 8% in the Benefit/Cost analysis, determine which p
At the end of their useful lives, both A and B may be purchased with the same cost, benefits, and so forth. If the MARR is 12%, which alternative should be selected based on the internal rate of ret
To block entry, the incumbent appeals to the government to require that the entrant incur extra costs. What happens to the Cournot equilibrium if the legal requirement causes the marginal cost of th
A university planner wants to determine the proportion of spring semester students who will attend summer school. She surveys 32 current students discovering that 12 will return for summer school. W
b)At the profit-maximizing output rate, what are the monoplist's average total cost and average revenue c) At the profit-maximizing output rate, what are the monopolist's total cost and total revenue
Jonathan (a monopolist) maximizes profit by producing a quantity of 800 pillows where marginal cost is $2 and average cost is $4. Consumers are willing to pay as high as $10 per pillow when the quan
CRA CDs, Inc., wants the mean lengths of the "cuts" on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minut
The Oil Price Information Center reports the mean price per gallon of regular gasoline is $3.79 with a population standard deviation of $0.18. Assume a random sample of 40 gasoline stations is selec
Irvine Aerospace of Santa Ana, California, was awarded a 5 year contract to develop an advanced space capsule airbag landing attenuation system for NASA's Langley research Center. The company's comp
Austin Utilities is planning to install solar panels to provide some of the electricity for its groundwater desalting plant. The project would be done in two phases. The first phase will cost $4 mil
In the long-run, outsiders enter the market since they have observed the existing firms are profitable. As more and more firms in the market, the market price is reduce to P = 12. Assuming the MC =