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Question: Sam can sell all of the output he wants at a price of $1000. He has the following cost function:
TC = 200,000 + 80Q + .08Q2
Calculate the profit maximizing quantity.
Calculate the maximum profits of the firm.
Graph the demand, marginal revenue, marginal cost and average cost functions.
Shade in the area that represents the profits of the firm.
Describe which of four strategies was used in the resurgence of IBM as chronicled in this case history.
Use your spreadsheet's optimizer to find the meal proportions that meet the BMI and heart goals at minimum cost. Which category is not a part of the least-cost weekly meal plan?
what conditions must exist in order for a pure monopolist to achieve economic profits? is the profitability of a firms
Suppose the federal reserve adopts a policy of complete transparency; that is, suppose it announced beforehand how it will change the money supply. According to rational expectations theory, how will this policy affect the Fed's ability to move the r..
Use a work-leisure diagram that includes nonlabor income to portray an individual who is maximizing utility by working, say, 8 hours per day. Now compare the labor supply effects of imposing (a) a lump-sum tax and (b) proportional tax of, say, 30 per..
Why do ethicists tend to reject the theory of ethical relativism? If you agree, which argument (or possible scenario) do you find most persuasive - and why?
There are two goods in the economy, anchovies (a fish) and bananas (a farm product). Draw the economy's production possibilities before and after a natural disaster that lowers the banana harvest but does not affect anchovies.
As the manager of a 60-unit hotel you know that all units are occupied when you charge $80 a day per unit. Each occupied room costs $8 for service and maintenance a day. In addition there is a fixed cost of $400 a day. You have also observed that for..
The velocity of money, V, is de?ned as the ratio of real GNP to real money holdings, V = Y/(M/P) in this chapter's notation. What is the relationship between velocity and the exchange rate?
You should have 8 graphs. The written answer should be set up under the graph as follows: Price: Increase/Decrease (select one) Quantity: Increase/Decrease (select one) Determinant: One of the determinants for demand (TRIBE) or supply (ROTTEN) that c..
Identify all of the primary and secondary benefits of the program. Also identify the direct and indirect costs. Briefly explain the direct and indirect costs.
Neilsen Media Research wishes to pretest a questionnaire to be mailed to many thousand spectators. One question involves the ranking of male and female college students
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