Macroeconomics: Private and Public Choice
Macroeconomics: Private and Public Choice
15th Edition
ISBN: 9781305176799
Author: Gwartney
Publisher: Cengage
Question
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Chapter 9, Problem 16CQ

(a)

To determine

Identify the quantity of GDP.

(b)

To determine

Explain the situation is the long-run equilibrium level of GDP or not.

(c)

To determine

Explain the relationship between the actual and natural rate of unemployment.

(d)

To determine

Explain the current rate of GDO is sustainable into the future.

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You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group s elasticity of demand is while group s is Your marginal cost of producing the product is $ a Determine your optimal markups and prices under thirddegree price discrimination. b Identify the conditions under which thirddegree price discrimination enhances profits.
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