KA
Karla Agudelo
Answers (6)
KA
Answered
Internet service in the local market is supplied by Laura's Internet Service. The demand is 
Laura's marginal cost function is 
If Laura practices first-degree price discrimination, what are consumer surplus and Laura's producer surplus in this market? Does Laura's market power and first-degree price discrimination result in reduced societal welfare?
Laura's marginal cost function is If Laura practices first-degree price discrimination, what are consumer surplus and Laura's producer surplus in this market? Does Laura's market power and first-degree price discrimination result in reduced societal welfare?On Jul 10, 2024
If Laura can first-degree price discriminate, she will charge the highest price each consumer is willing-to-pay. This implies she will continue selling units until the price of the last unit sold equals her marginal cost.
P = 65 - 0.01Q = MC = 6.67 + 0.0067Q
Therefore Q = 3,492.8
Producer surplus is
PS = (0.5)(65 - 6.67)(3,492.81) = 101,867.80
Since the price of the last unit sold is equal to the marginal cost, Laura's output level is efficient. However, since Laura is first-degree price discriminating, consumer surplus is zero. Social welfare in this market structure is as high as possible given the efficient level of units are produced.
P = 65 - 0.01Q = MC = 6.67 + 0.0067Q
Therefore Q = 3,492.8
Producer surplus is
PS = (0.5)(65 - 6.67)(3,492.81) = 101,867.80
Since the price of the last unit sold is equal to the marginal cost, Laura's output level is efficient. However, since Laura is first-degree price discriminating, consumer surplus is zero. Social welfare in this market structure is as high as possible given the efficient level of units are produced.
KA
Answered
Which of the following legislation allows the Securities and Exchange Commission to suspend securities trading if prices vary excessively within a short time period?
A) The Sarbanes-Oxley Act of 2002
B) The Securities Acts Amendments of 1990
C) The Market Reform Act of 1990
D) The Securities Enforcement Remedies and Penny Stock Reform Act of 1990
E) The National Securities Markets Improvement Act of 1996
A) The Sarbanes-Oxley Act of 2002
B) The Securities Acts Amendments of 1990
C) The Market Reform Act of 1990
D) The Securities Enforcement Remedies and Penny Stock Reform Act of 1990
E) The National Securities Markets Improvement Act of 1996
On Jul 10, 2024
C
KA
Answered
In linear programming, if there are three constraints, each representing a resource that can be used up, the optimal solution must use up all of each of the three resources.
On Jun 13, 2024
False
KA
Answered
_____ are large banks that borrow from and lend to governments, other banks, and corporations.
A) Retail banks
B) Commercial banks
C) Money center banks
D) Corporate banks
A) Retail banks
B) Commercial banks
C) Money center banks
D) Corporate banks
On Jun 10, 2024
C
KA
Answered
What is the perception process? Why is it important?
On May 14, 2024
Perception is the process by which people select, organize, interpret, retrieve, and respond to information from the world around them. Perception is a way of forming impressions about oneself, other people, and daily life experiences. It also serves as a screen or filter through which information passes before it has an effect on attitudes and behavior. The nature and accuracy of a person's perceptions, therefore, has a major impact on his or her responses to a given situation.
