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- What is Price Discrimination? Write down the conditions and types of price discrimination. How it differs from Dumping?This section of the course examines restrictive practices (Chapter 11 of TextLinks to an external site.) and lists a few types of these practices. For this discussion, your task is to: Identify a good and firm that utilizes a restrictive practice? Explain how the restrictive practice works? Explain who benefits and who is harmed by this restrictive practice? In your opinion, is this a fair restrictive practice, or is it one that may be predatory?How many margins are there at which people could change their behavior in response to congestion pricing?
- Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:1 Demand: P = 1,000 – 10Q Marginal Revenue: MR = 1,000 – 20Q Marginal Cost: MC = 100 + 10Q a. Find the price and quantity that maximize the company’s profit. b. Find the price and quantity that would maximize social welfare. c. Use a graph to illustrate the DWL and calculate the dollar value of the DWL.Consider the market for blueberries (a homogeneous product) in Madagascar, which is con- sidered a small country. Demand for a good is given by QD = 100– P. Domestic supply for the good is given by: Qs = P. Each country that exports blueberries has different marginal cost: $30 per crate in South Africa, $25 per crate in Peru, and $20 per crate in Chile. (a) Calculate the price, domestic output, consumption, imports, consumer surplus, and producer surplus associated with blueberries in the Madagascar free-trade equilibrium. (b) In the free-trade equilibrium, how many crates of blueberries are imported from each of the three source countries? (c) Calculate the price, domestic output, consumption, imports, consumer surplus, pro- ducer surplus, and government revenue associated with blueberries if Madagascar adopts a $15 MFN tariff on all WTO members. How many crates of blueberries are imported from each of the three source countries? (d) With the adoption of a Southern African Free Trade…Fair use is defined in Section 107 of U.S. copyright law. It includes four factors designed to determine whether a use is fair. Look up Section 107 of the U.S. CopyrightLaw. In your own words, what are those four factors?
- The term external to the exchange. refers to a market exchange that affects a third party who is outside or a) private costs b) externality c) market failure d) social costsHow large should a Pigovian tax be to achieve efficiency?Discuss how trade can generate both positive and negative externalities. Use relevant diagrams to support your answer.
- Table 17-5. Imagine a small town in which only two residents, Kunal and Naj, own wells that produce safe drinking water. Each week Kunal and Naj work together to decide how many gallons of water to pump, to bring the water to town, and to sell it at whatever price the market will bear. Assume Kunal and Naj can pump as much water as they want without cost so that the marginal cost of water equals zero.The weekly town demand schedule and total revenue schedule for water are shown in the table below. WeeklyQuantity(in gallons) Price WeeklyTotal Revenue(and Total Profit) 0 $12 $ 0 25 11 275 50 10 500 75 9 675 100 8 800 125 7 875 150 6 900 175 5 875 200 4 800 225 3 675 250 2 500 275 1 275 300 0 0 Refer to Table 17-5. Since Kunal and Naj operate as a profit-maximizing monopoly in the market for water, what price will they charge for water? Group of answer choices…Imagine a small town, in which only two residents, Tony and Jill, own wells that produce water for safe drinking. Each Saturday, Tony and Jill work together to decide how many gallons of water to pump, bring the water to town, and sell it at whatever price the market will bear. Meanwhile, suppose that it costs $1/gallon for Tony &Jill to pump & deliver water to the customer: i.e., the marginal cost, MC = $1. The weekly town demand schedule and total revenue schedule for water is reflected in the table below. Note: Price (P) is a function of the weekly market quantity (Q): i.e., P = 13 – 0.1 Q Total Marginal Total Marginal Cost Revenue Revenue Quantity (Q) Price Cost Profit (P) (TR) (MR) (TC) (MC) (TT) 13 N.A N.A 10 12 120 12 10 1 110 20 11 220 10 20 1 200 30 10 300 1 40 1 50 8 60 7 70 6 1 80 1 90 4 1 100 3 1 110 220 1 120 1 120 1 130 -12 130 1 -130 (1) Complete the above table by filling all blanks. (2) As long as Tony and Jill operate as a profit-maximizing monopoly, what will the…Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Rochelle and Alec can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly demand schedule and total revenue schedule for water is shown in the following table: Quantity (Gallons) 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Table 17-1 Price Refer to Table 17-1. What is the socially efficient quantity of water? Ca. 600 gallons Ob. 900 gallons Oc. 1,200 gallons Od. 0 gallons (Dollars per gallon) 60 55 50 45 40 35 30 25 20 15 10 5 0 Total Revenue and Total Profit (Dollars) 0 5,500 10,000 13,500 16,000 17,500 18,000 17,500 16,000 13,500 10,000 5,500 0