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1. Assume that macroeconomic forecasters predict that the economy will be expanding in near future. How might managers employ this information
2. Governments impose excise taxes on goods which have inelastic demand, such as cigarettes, more often than in other cases. Describe why
Dsecribe a complete business cycle (trough, peak, expansion, recession), focusing on what happens to output, investment, employment in each phase.
Price elasticity of demand, Income elasticity of demand and Cross elasticity of demand of toyota corolla car.
Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Different customers pay varying prices for essentially the same coach seat because some passengers qualify for discounts and others do no..
If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?
A firm has a cost function given by the following: Find the firm's production function, y= f(x1, x2).
Recent health reports indicate that calcium is asorbed better in natural forms as milk, and at the same time, the cost of milking equipment rises. Examine the probable effects on the market.
Prepare your slides as soon as you have a good final draft. Preparing the slides will help you see any weaknesses in your paper.
For each of following changes, show/explain the effect on DEMAND CURVE and state what will take place to market equilibrium price and quantity (in the short run).
Farmers have a relatively inelastic demand for their crops. Suppose there is a bumper crop year (an unusually large harvest).
Short and Long-term costs business comparisons. Select directly comparison business concepts and generally discuss the FC, VC, break-even quantities, economies of scale and diseconomies of scale for each.
Compute the best response function of each firm in terms of prices. Compute the resulting equilibrium price quantity combination for each firm. Describe your answer with a suitable graph. Also calculate optimal profits of each firm.
How does competition affect profits and prices? What causes some firms to enter an industry, and others to leave it?
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