Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2 )q where p is price in $ per hour and q is hours per month
The firm faces a constant marginal cost of $1. The profit maximizing two-part tariff yields results in the firm selling A) 4.5 hours.
B) 10 hours.
C) 5 hours.
D) 8 hours.
D
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Communities may form competitive markets for providing certain types of non-pure public goods. ?
Answer the following statement true (T) or false (F)
Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
What will be an ideal response?
Which of the following is not an explicit cost?
a. salaries b. sales taxes c. the cost of utilities, such as gas and electricity d. insurance premiums e. the value of a firm owner's time
Import bans, import quotas, voluntary export restraints (VERs), and tariffs on goods all:
A. increase equilibrium quantities and prices. B. decrease equilibrium quantities and prices. C. increase equilibrium quantities, but decrease prices. D. decrease equilibrium quantities, but increase prices.