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Microeconomics A Contemporary Intro

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 6QFR

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Question

Assume that the willingness to pay for a particular shirt is 125 and that producing that shirt has a
marginal cost of 30. In addition, a tax of 20 is levied on the buyer of this shirt.
How much does the purchase or sale of this shirt increase overall economic welfare?
Answer:

What is the profit for the perfectly price discriminatory monopoly (1st degree price discrimination) with the
following demand:
Q = 6 - P (P is the price and Q is the quantity.) And
the following total costs: TK (Q) = Q2+ 2
Answer:

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