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Assume a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3/gal. Find the optimal number of bottles to package together for sale and the profit-maximizing price to charge for the package. Find the solution and show it graphically.
Using the theory of oligopoly and the concept of prisoners dilemma, explain why the cigarette companies did not cut on advertising on their own to increase their profits before the law went into effect?
Assume the marketplace for milk. For each of the following events, state whether it affects supply or demand (or both, or neither), which direction supply/demand shifts.
In the months of preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
Elucidate what would you expect to happen to the nominal yields changes in inflation expectations and required real yields occurred.
Illustrate what are the 2 policy options used to influence the economy
Illustrate what real rate of return will you earn if the inflation rate.
Top Gun Marketing, Inc., offers overhead banner fly-by promotion services using their Cessna aircraft and banner creation facilities.
All firms in a Cournot monopolistically competitive industry have the same cost function C (q)= 25 + 10q. Compute the equilibrium price, total output, firm output and number of firms in the industry.
Describe how these changes might impact stakeholder relationships your organization has with financial institutions.
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
Explain why dose not raise in aggreate demand translate into an increase in real GDP.
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