4. medicaid’s rebate program guarantees that medicaid gets a fixed rebate on each unit pur- chased by medicaid consumers. the rebate is calculated as the difference between the min- imum price charged in any market and the quantity weighted average price (this is called minimum price provisioning or mpp). if the monopolist sets p1 = 50 and p2 = 30. what would the per-unit rebate payment be? note: the quantity weighted average is computed with respect to all customers. 5. for simplicity, suppose a simple average of prices (instead of a quantity-weighted price) is used to calculate the rebate payment. assuming devlin mcgregor still price discriminates, how should it adjust its prices to maximize profit under the rebate program? for this part assume that devlin-mcgregor will price in a way to serve all segments and all markets. 6. give an intuitive explanation for how the optimal prices change compared to the uncon- strained problem when no mfc provision is imposed.

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Suppose that the world price of steel is $100 a ton, india does not trade internationally, and the equilibrium price of steel in india is $60 a ton. suppose that india now begins to trade internationally. the price of steel in india the quantity of steel produced in india a. does not change; does not change b. falls; increases c. falls; decreases d. rises; decreases e. rises; increases the quantity of steel bought by india india steel. a. increases; exports b. decreases; imports c. decreases; exports d. does not change; neither imports nor exports e. increases; imports

Cindy recently played in a softball game in which she misplayed a ground ball for an error. later, in the same game, she made a great catch on a very difficult play. according to the self-serving bias, she would attribute her error to and her good catch to her