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?

Which of the following should be avoided by patients taking Monoamine Oxidase (MAO) inhibiters?

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?

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?

Refer to Figure 1. Suppose a single firm is the sole supplier of commodity X in the market. The monopolist has a constant marginal cost of $20 as shown in Figure 1. What is the producer surplus gained by the monopolist?

Refer to Table 1. If the equilibrium rent for an apartment falls from $60 to $40, how much does the total consumer surplus in this market change?

The demand for microwaves in a small town is given by P(Q) = 35 – 2Q. 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 $7. What is the deadweight loss created in this market, if any?

The inverse demand for oranges is defined by P(q) = 182 – 7q, where q is the number of units sold. The inverse supply functions is defined by P(q) = 22 + 3q. A tax of $10 is imposed on suppliers for each of orange sold. What is the price received by suppliers (producers) after the tax is imposed?

The demand for baseball bats in a large city is given by P(Q) = 86 – 2Q. Suppose the demand for baseball bats in this large city is satisfied by four firms (n=4) with identical constant marginal (and average) costs of $6. Suppose that firms compete by setting quantities. What is the Cournot equilibrium profit earned by each firm in this market?

The inverse demand for wireless headphones is P(q) = 280 – 3q, and the inverse market supply for wireless headphones is P(q) = 100 + 2q. Assume the market for wireless headphones is competitive. What is the competitive market equilibrium quantity of wireless headphones?