Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of thes...
Use following information to answer 36-40 Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are = 150-0.75PNY QLA=80-0.25PLA QNY where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C 1000+ 40Q where Q = QNY +QLA 36. What are the profit-maximizing price and quantity for the New...
The “dead-weight loss” from an excise tax… a. is greater if demand is perfectly inelastic. b. is caused by a shift in consumer preferences when the tax is raised. c. is the lost surplus that results from the higher price and lower output resulting from the tax. d. is of little concern to policy makers since all excise taxes are “sin” taxes. e. is the difference between consumer surplus and producer surplus. Flag this Question Question 62 pts Aaron is...
1. The market for cigars in New York City is perfectly competitive, with the weekly demand and supply curves given by: QD = 110 – 10P QS = 5 + 5P A. Using the equations, solve for equilibrium price and quantity in this market. B. Next, graph the demand and supply curves in the grid below. Be sure to indicate equilibrium price and quantity. Check that equilibrium price and quantity in the graph match your answer to part A (above)....
Answer all questions 39. Microsoft sets prices for its new line of computers, and Dell and HP follow. This practice is known as A) B) C) D) antitrust pricing price extortion price leadership kinked demand behavior 40. To be binding, a price ceiling must be set at a price: A) lower than the equilibrium price. B) higher than the equilibrium price. C) the same as the equilibrium price. D) any price ceiling is binding. 41. The profit-maximizing rule MR- MC...
1. Suppose that the supply and demand schedules for pizza in the ABC campus are as follows: QUANTITY DEMANDED (slices/week) 1000 PRICE QUANTITY SUPPLIED (TL/slice) (slices/week) 200 400 600 800 1000 a) Find the equilibrium price and quantity of pizza 600 400 200 b) Find the price elasticity of demand at equilibrium and indicate whether it is elastic, unit-elastic, or inelastic. c) Find the price elasticity of supply at equilibrium and indicate whether it is elastic, unit-elastic, or inelastic. 2....
its fundamentals to economics ensures that resources are allocated to their highest-valued uses. a. Monopoly b. Government C. The consumer d. Competition e. Arbitrage Styles 3 As the wago rato increases, the quantity supplied of labor in a market will a. increase. b. decrease c. first increase and then decrease. d. first decrease and then increase. e. remain constant. 4 As the wage rate increases, the quantity demanded of labor in a market will a. increase. b. decrease. c. first...
usion (24 points) Two firms are playing a repeated Bertrand game infinitely, each with the same marginal cost 100. The market demand function is P-400-Q. The firm who charges the lower price wins the whole market. When both firms charge the same price, each gets 1/2 of the total market. I. Coll A. (6 points) What price will they choose in the stage (only one period) Nash equilibrium? What price will they choose if in the stage game (only one...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
QUESTION 21 Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the following changes would reduce the size of the surplus? a. An increase in demand. b. A decrease in demand. c. An increase in supply. d. Any of the above. QUESTION 22 Economic growth can be illustrated by: a. an inward shift of the production possibilities curve. b. a movement along the production possibilities curve. a movement from a point...
1) Decreasing returns to scale may occur as increasing the amount of inputs used A) increases specialization B) may cause coordination difficulties. C) always increases the amount of output produced D) increases efficiency. 2) Which of the following statements is NOT true? A) AFC = AC - AVC C) AVC = wage/MPL B) AC = AFC + AVC D) C=F-VC 3) The more elastic the demand curve, a monopoly A) will have a larger Lemer Index. will face a lower...