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Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for Hours and spend A dollars advertising, your benefit(the amount you receive when you sell your car) is B(H,A)=220H-H^2+2A. Both H and A are finely divisible. What is your marginal benefit of repair hours when H=4 and A=100?
Suppose that in Problem above, repair work costs $100 per hour and you have $1500 to allocate between repair work and advertising. Write down the Conostrained optimization Problem you face. What is your best choice of repair hourtising? Interpret the condition that characterizes your best choice in terms of marginal benefits and marginal (opportunity) costs of repair work.
Why would a merger reduce costs? Why would a merger increase markups? Why do many mergers fail nonetheless? What information would you like to have to plan advertising spending? Why might banning advertising drive up prices?
Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following p..
measured in thousands of units and price (P) is measured in dollars per unit. The equilibrium quantity in this market it.
A company that manufactures brushless blowers invested $650,000 in an automated quality control system for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipment had a salvage value of $50,000, what rate of return ..
Suppose a firm takes two inputs, labor and capital, as perfect substitutes. In addition, this firm can substitute one labor for one capital. If wage is $2000 and rental rate for capital is $3000, what is the optimal labor and capital usage for this f..
A winery estimates that the demand for its fine Owner's Select, has an income elasticity of 2, where income refers to the income per capita of its customer base.
Now, the government realizes aforementioned situation that the one firm controls the industry. Economic officer from the government asks you to fix this problem. Provide your solution by applying the price regulation scheme and you have to give me a ..
Give an equation that shows the relationship between excess reserves, maximum checkable-deposit expansion, and the monetary multiplier.
elucidate classical economists stressed the long run?its your birthday and your uncle opens his wallet and gives you a
illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods.
q.suppose there are 2 economies. in each economy there are 2 outputs bacon and eggs which are produced with perfectly
There are three ice cream vendors who are deciding where to locate on a beach. The only decision that they have to make is where to locate the store that they have to run. There are 10 positions available on the beach and costumers are uniformly dist..
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