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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:5 Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the
price goes up by _ amount of the tax.
O A 1/4
ов 1
оС 1/2
OD 2
6 Consider a pure exchange economy. Suppose
uĄ(x, x;) = (x)ª(x3)'-e, wa = (1,0)
ug(xj,x;) = min{x}, x;}, w, = (0,1),
where o < a < 1, the competitive equilibrium (x},x3), (x}, x;); (1,p2)of this economy is .
O A
(1 – a, 1 – a), (a, a); (1, :)
O B
((a,a), (1 – a, 1 – a);(1, :)
((a, a), (1 – a, 1 – a);(1,)
-
(1 – a,1 – a), (a, a):(1,)
O D

Transcribed Image Text:7 Suppose a monopolist' s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 –
-ty. The monopolists'
optimal output level y* and maximal profit are
and
O A 30; 1350
ов 20; 1200
OC 30; 2700
OD 20; 2400
8 Suppose a monopolist s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – 2y. If the monopolist is
a price taker, i.e., if it considers the market to be a competitive
market, the optimal output level y* and maximal profit are_ and_.
O A 36; 1296
ов 33; 1350
ос 32;B 1664
OD 30; 1500
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