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PDQ-953'. You are an aspiring monopolist and planning to sell a new gadget you have developed. The demand in the LSE campus for this gadget
PDQ-953'.\" You are an aspiring monopolist and planning to sell a new gadget you have developed. The demand in the LSE campus for this gadget is given by Q=50-2p and your marginal cost of producing each gadget is 10. Which of the following statements are true about the short run? As a simple monopolist you will sell 15 gadgets. As a simple monopolist you will sell each gadget for \"IO pounds. As a simple monopolist you will sell each gadget for 25 pounds. As a fully discriminating monopolist you will make a profit of 225 pounds. As a fully discriminating monopolist you will make a profit of 450 pounds. You are thinking about investing in one of the following three projects. Project A costs 2ka pounds today and pays off 30k pounds in two years. Project B costs 40k pounds today and pays off 60k pounds in two years. Finally, Project C involves paying nothing today and receiving no payments in the future. Which of the following statements are true? a. b. Whatever the interest rate, the net present value (N PV) of project C is zero. Suppose that there are no credit markets so you cannot borrow or save. You surely prefer project A as it costs half as much as project B. Suppose that credit markets are perfect. There is an interest rate level so that for each interest rate higher than that level you would prefer Project A to Project B. Suppose that credit markets are perfect. There is an interest rate level so that for each interest rate higher than that level you would prefer Project B to Project A. Suppose that credit markets are perfect. Either you prefer projects A and Project B to Project C or you prefer Project C to projects A and B or you are indifferent between the three projects
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