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ECON 444 Homework 5 Problem Set 5 Answers (Penn State University), Latest Questions and Answers with Explanations, All Correct Study Guide, Download to Score A

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ECON 444 Homework 5 Problem Set 5 Answers (Penn State University), Latest Questions and Answers with Explanations, All Correct Study Guide, Download to Score A Econ 444 (Corporate Economics), Sprin... g 2021 Problem Set #5 Problem 1. TomsonBook is the monopoly publisher which produces the textbook “Corporate Economics.” TomsonBook sells in two separate markets, domestic market and international market. The inverse demand function in domestic market is pD = 600 − qD while the inverse function in international market is pI = 450 − qI. The firm’s total cost function is c(qD + qI) = (qD + qI)2. Suppose TomsonBook can charge different prices in each of the two markets. Problem 3. Suppose a flower shop has a monopoly in the market for a new type of orchid, which no other flower shop is able to produce. Because this orchid is very rare, every consumer’s individual demand for these orchids is Q = 125 - 2P. There are 100 consumers. The flower shop is able to produce the orchid at a marginal cost of $25. Suppose that the owner simply decides how many orchids to produce. How many are produced, how many does each consumer purchase and what is the market price of an orchid. [Show More]

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