Amonopolist faces the following inverse demand curve: pp(q) = 400 – 4q and its cost function is given by c(q) = 2q2 + 40. 1. what is the firm's elasticity of demand? 2. recall that a monopolist's supply curve is its marginal cost curve. express the firm's supply curve as a function of q, ps(q). 3. what price and quantity levels maximize total welfare? how is this welfare allocated between consumers and producers? 4. calculate the monopoly price and quantity traded for the firm. calculate the consumer surplus, producer surplus, profit and dead weight loss (dwl) at the monopoly price. 5. compute the lerner's index. suppose the government decides to regulate the industry in which the firm operates with the objective of increasing consumer surplus. it tells the firm that it will be paid $80 dollars for each unit it sells. 6. how much does the firm produce? how much does this subsidy cost the government?

Suppose the price of a complement to lcd televisions rises. what effect will this have on the market equilibrium for lcd tvs?

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker