Calculate the total cost to the government
Assume the market supply and demand are Qd=100 - 2p and Qs= 5 +3p. If the government sets a price floor of $30 and agrees to purchase all surplus at $30 per unit, the total cost to the government will b : A/$1650 B/$1375 C/$900 D/$1125
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Determine the primary reason that economists view monopolies as a problem? Is this different than you would have expected? Discuss what methods are available to mitigate the impact of monopolies?
Customers who buy on credit pay an effective annual interest rate of 16.1% at the Central Furniture Company, based on the monthly compounding, determine the nominal annual interest rate that they pay?
What would be the new price and quantity of hotel rooms actually traded if a price ceiling of $150per month were instituted in the city of Boston?
Three of the banks that currently have 15% of the market would like to merge and produce the First Super Bank of Richmond. If the merger were allowed, determine the new measure of monopoly power.
Suppose that Dr. Slight has $300 to spend on the goods X and Y. Dr. Slight combines X and Y using a very strict ratio to derive utility. Good X costs $5 per unit and Good Y costs $3 per unit.
Determine the cross price elasticity of apple pork and sauce chops at a pork chops price of $6? If the price of pork chops falls from $8 to $6 and this leads to an increase in demand for apple sauce from 100 to 140jars.
Suppose your company adopts a technology that allows you to increase your output by the 15%. If the elasticity of demand is -3.0, discuss how should you adjust the price if you want to sell all of your additional output?
Determine the present worth of cash flows that begin at the $10,000 and increase at the 7% per year for 5 years? The interest rate is 9%.
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