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Suppose a monopolist producing Q units of output faces the demand curve P = 20 - Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a fixed cost. The marginal cost is MC = 2
Due to a tuition rise, most students at a college find themselves with less disposable income. Almost all of them eat more frequently at the school cafeteria and less often at restaurants
What would be the effect of each of the following on the supply of salsa in the United States? In each case, identify the responsible determinant of supply.
At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average t
Compare the size of the welfare (deadweight) loss under monopoly in the case of perfect price discrimination and under the standard case of simple monopoly. Explain.
Assuming that Professor Smith spends the $100 each month at either Alice’s or the club, sketch his budget constraint. Show actual numbers on the axes.
Edward the entrepreneur takes two hours to cut a lawn, and he cuts 1,000 lawns per year, he use solar powered equipment thw will last forever and can be sold for $20000. the interest rate is 10 perent
When the two countries did not specialize, the total production of corn was 36 million bushels per month, and the total production of jeans was 104 million pairs per month
Evaluate the statement: “Restricting imports from other nations will save U.S. jobs.” Include both advantages and disadvantages in you argument
For what values of the discount factor can grim punishment strategies support an equal division of the monopoly output?
The change in the consumption of good X due to the change in the price of good X while holding the consumer’s utility level constant at the original level of satisfaction.
the cross price elasticity of demand of soft drinks for popcorn is -2.0; and the income elasticity of demand for soft drinks is 1.2. Use this information to answer the following question.
Emily sold lemonade on Tuesday for $.50 a cup and she sold 100 cups. On Thursday she raised the price to $1 a cup and sold 50 cups. The demand for lemonade is
The profit maximization rule for a perfectly competitive firm states that the perfectly competitive firm will maximize its profits when it produces that quantity where marginal revenue
Your company is trying to decide whether to raise the price of your product from $$7.5 by $0.50 or lower it by $0.50. Given the above information what would you recommend if the sole goal of your firm
Consider a monopolist where the market demand curve for the produce is given by P = 520 – 2Q. This monopolist has marginal costs that can be expressed as MC = 100 + 2Q and total costs that can b
Give an example of an event that would shift the demand curve for secondary tickets to the Badger football game leftward. Explain your reasoning.
Suppose that Marie’s marginal utility from consuming one more unit of bubble gum is 10 utils while her total utility from consuming one more unit of cake increases from 130 utils to 142 utils.
Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand?
Explain: “Politicians would make more rational economic decisions if they weren"t running for reelection every few years.” Do you favor term limits for elected officials?
Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the
Suppose that unusually hot weather causes the demand curve for ice cream to shift to the right. Why will the price of ice cream rise to a new market-clearing level?
The average of 5 numbers is 52. Suppose five more numbers are included in the set of numbers and these five numbers equal 0, 100, 48, 90, and 50. What is the new average?
You are told that there are two linear lines in a coordinate graph with x the variable on the horizontal axis and y the variable on the vertical axis. The first line contains the points (5, 10) and (1
In the market for corn flakes the price of cardboard used in packing the cereal has risen at the same time that the Surgeon General releases a report detailing the dangers of a diet high in corn produ