The demand for microwaves in a small town is given by P(Q) =…
The demand for microwaves in a small town is given by P(Q) = 80 – 3Q. Suppose Steve’s Surplus Store is the sole supplier of microwaves in this small town, and this firm has a constant marginal (and average) cost of $8. What is the profit-maximizing output level for Steve’s Surplus Store?
Read DetailsSuppose a firm has a monopoly over the sale of smartwatches…
Suppose a firm has a monopoly over the sale of smartwatches in the U.S. The inverse demand for smartwatches in Florida is given by P1(q1) = 200 – q1, and the inverse demand in New York is given by P2(q2) = 100 – 3q2, where q1 and q2 are the total output of smartwatches sold in Florida and New York, respectively. The demand for smartwatches in each market is observable to the monopolist. The firm has a constant marginal cost of $4 and zero fixed costs. Assume that the firm can charge different prices in each market. What is the profit-maximizing quantity sold to consumers in the New York market?
Read DetailsA patient has been taking Fluoxetine (Prozac) for depression…
A patient has been taking Fluoxetine (Prozac) for depression. He recently has begun to complain of increased side effects from the Fluoxetine. On further questioning, you discover that he has been taking an over the counter medication, Cimetidine (Tagamet) since he is concerned about developing an ulcer. What is the most probably reason for the increased symptoms from Fluoxetine?
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