Now suppose the monopolist in Problem 2 also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?
Answer to relevant QuestionsNow suppose the monopolist in Problem 2 has a long- run marginal cost curve of MC = 20. Find the monopolist’s profit-maximizing quantity and price. Find the efficiency loss from this monopoly.An author has signed a contract in which the publisher promises to pay her $10,000 plus 20 percent of gross receipts from the sale of her book. True or false: If both the publisher and the author care only about their own ...AT& T and MCI are competing in the long- distance telephone market. Both companies are considering whether to offer a discount calling plan to attract new customers. Their payoffs depend as follows on the combinations of ...The market demand curve for a pair of Cournot duopolists is given as P = 36 - 3Q, where Q = Q1 + Q2. The constant per unit marginal cost is 18 for each duopolist. Find the Cournot equilibrium price, quantity, and profits.Given the information in the following table, fill in the value of the marginal product of labor for price P = 4. Find the perfectly competitive firm’s optimal labor demand for a wage w = $4/hr.
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