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The demand curve is: QD = 500 - 1/2 P.
Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic?
Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic?
Find the point at which point elasticity is equal to -1.
Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2. Suppose the fi..
Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
Government says that firm X must pay $1000 in taxes simply because it is in business of producing a good. What cost curves if any does this tax affect and does MC change if TC changes.
The production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What are the capital's and labor's shares of income...
q1. cost mart reduces the cost of a 42 inch tv plasma from 1200 to 1000. as a result sales of tv plasmas increased from
The supply and demand curves for mousetraps cross at a price of $10 apiece. There is and always has been a price ceiling of $6 per mousetrap. Now the government imposes an excise tax of $2 per mousetrap (while maintaining the $6 price ceiling). Illus..
Your mutual fund increased in value from $10 to $40 over the last 15 years. Illustrate what was the average annual return with continuous compounding for the mutual fund over the 15 year period.
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8 percent a year, a debt-equity ratio of .45, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.3. Required: What profit margin must ..
If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,
Illustrate that there are any extra costs or benefits due to this shift.
A prediction interval provides an interval estimate for:
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