Information for questions 1-8 The following figure has several curves. They are: The domestic demand for a good in a certain country: black curve, labeled DDOM. The marginal cost of a monopolist that dominates the market in this country: yellow curve, labeled MC=S. Four auxiliary curves, labeled A, B, C, and D. Please spend a couple of minutes familiarizing yourself with these curves, since there are quite a few on the figure. Note that one vertical grid space is $5; while one horizontal grid space is 25 units of the good. This monopolist can only sell in the domestic country. When the country is in autarky, it just behaves as any regular monopolist. When the country engages in free trade with the rest of the world, the monopolist must take into account the threat of imports at the world price PW=5 (horizontal line at a height of $5, not shown). Assume that this is a small country, so nothing that it does will affect this world price. If a line seems to cross a grid point, you must assume it does so, and therefore get an exact answer. In these cases, only the exact answer is accepted. Examples: you must assume that line D at a price of $20 corresponds exactly to a quantity of 75; and you must assume that lines C and D cross exactly at a price of $20, and quantity of 75. When you need to read off a value not crossing at a grid point, then reasonable approximations within one grid square are accepted. Example: line D at a price of 35 seems to be roughly a quantity of 37.5, so 37.5 ± 25 will be accepted. Also, assume that the horizontal intercept of line B is exactly 87.5. For all numerical questions enter a whole or decimal number. If an answer cannot be obtained with the information given, enter the number 0. Do not enter any dollar signs, just numbers, and a decimal point if needed. For questions 5-8, assume that the country imposes a quota of 75 units on imports of this good from the rest of the world. Again, taking into account your answers to the previous questions, calculate the price at which this monopolist sells, when the quota is in place.
Blog
When Theseus reached the pinnacle of his career, his longing…
When Theseus reached the pinnacle of his career, his longing for domestic bliss became apparent as he sought marriage with a woman reminiscent of his first love, whom he couldn’t marry because
Check all that apply: According to the philosophy of Nonviol…
Check all that apply: According to the philosophy of Nonviolent Communication,
M5 Q1: What is the primary defense against DNS cache poison…
M5 Q1: What is the primary defense against DNS cache poisoning?
M4 Q3: Why is reading “/etc/passwd/” not a malicious action?
M4 Q3: Why is reading “/etc/passwd/” not a malicious action?
M3 Q5: Which of the following mitigations can help prevent…
M3 Q5: Which of the following mitigations can help prevent privilege escalation attacks in Android?
M1 Q5: What is the purpose of code coverage in fuzzing?
M1 Q5: What is the purpose of code coverage in fuzzing?
Identify the speaker, the context, and the significance of t…
Identify the speaker, the context, and the significance of the following quote from Hamlet (4-6 good sentences): Oh my offence is rank, it smells to heaven, It hath the primal eldest curse upon’t, A brother’s murder. Pray I can not, Though inclination be as sharp as will. My stronger guilt defeats my strong intent, And like a man to double business bound, I stand in pause where I shall first begin, And both neglect.
What does the “Messenger from Go’d Throne” do in Canto IX?
What does the “Messenger from Go’d Throne” do in Canto IX?
Describe the speaker, the context, and the significance of…
Describe the speaker, the context, and the significance of the following lines from Hamlet (4-6 good sentences): It is here, Hamlet; Hamlet thou art slain; No medicine in the world can do thee good, In thee there is not half an hour of life; The treacherous instrument is in thy hand, Unbated and envenomed: the foul practice Hath turned itself on me; lo, here I lie, Never to rise again: thy mother’s poisoned: I can no more: the king, the king’s to blame.