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Calculate the profit-maximizing price for this seller. Calculate how this tax will affect the price the monopolist charges its customers.
Graph this demand curve. Then, calculate the profit-maximizing price and quantity of fairy dust. Finally, calculate the seller's profit.
Many industrywide studies of the elasticity of demand for cigarettes. How can you reconcile these apparently contradictory statements?
How many units will an unregulated monopolist sell? How many units will a profit-maximizing monopolist sell when the price ceiling is in place? At what price?
Calculate the profit-maximizing price and quantity, as well as producer and consumer surplus and the deadweight loss from market power.
Calculate the deadweight loss of monopoly in the market for the televised Yahtzee tournament.
Explain the advantages of such a system in maximizing social well-being relative to the traditional system of awarding patents.
Write out the firm's total revenue as a function of Q. Find the firm's profit-maximizing quantity by applying calculus to the profit function.
What is this firm's marginal cost function? Over what range of output are the firm's marginal costs decreasing? Increasing?
What are the two requirements of price discrimination? Why is producer surplus maximized under perfect price discrimination?
Contrast direct price discrimination and indirect price discrimination. Provide an example of product versioning.
Why are collusions and cartels often unstable? What is the market equilibrium in Bertrand competition with identical goods?
How much profit will Microsoft generate from a representative group of one author and one economist?
How much must Rockway & Daughters reduce the price of its Rockway line in order to achieve incentive compatibility?
If the owners of the theater decide to segment the market, who should be charged a higher price, students or adults?
Many gyms offer a mixed two-part tariff pricing scheme. One can join the gym and then have daily access. What must be true of the gym's customers' demands?
What is the difference between mixed bundling and pure bundling? What are the two component prices of a twopart tariff?
If you segment the market by gender, what price should you charge women? What price should you charge men?
Given this information, how big (in percentage terms) should the senior citizen discount be? Were your results in part (b) surprising? Explain them intuitively.
What price should the golf course set for individual rounds of golf? Why? What price and minimum quantity should it establish for the discounted plan?
Why would a textbook publisher go to the trouble to produce two versions of the same text?
Explain, using your knowledge of block pricing, why the owner's strategy of reducing prices as sales increase might actually lead to increased profit for bar.
A Toyota Camry costs $19,600 and has an average gas mileage of 27 mpg. How many miles do you have to drive before the two cars have the same total cost?
What is Jenny's opportunity cost of starting the business? If Jenny can make an accounting profit of $50,000 a year selling the organic groceries.
Write the cost-minimization problem as a Lagrangian. How will total cost change if the firm produces an additional unit of output?