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Market Researchers at the Lawrence Company estimate that the demand function for a product is: Q=75P^2*I^(-4) Q is quantity demanded, P is Price, and I is Income. Marginal cost is estimated to be $15.
a). They have their product priced at $30. Is this optimal? why or why not.
b). What would you recommend their optimal price to be?
c). How would you classify the product in terms of it's income elasticity?
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Ccompute the beta of the firm if the risk-free rate is 4%, and the market rate of return is 14 percent.
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You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your products is better than the competition, the government purchasing agent views the products
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