Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 9, Problem 9.11RDE

Subpart (a):

To determine

The CPI and the average hourly earnings of the economy.

Subpart (b):

To determine

The average hourly earnings of the economy.

Subpart (c):

To determine

Percentage change in average hourly nominal wage.

Subpart (d):

To determine

The CPI and the average hourly earnings of the economy.

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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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Demand and supply function

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Macroeconomics (7th Edition)

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