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Crusty Cakes sells donuts in Eastown and Westown. Its total costs are given by TC = 10(Qe+Qw). The demand in each neighbourhood is given by Qe = 100 - 2Pe and Qw = 100 - Pw. If Crusty price discriminates between the two neighbourhoods, how much are its maximized profits?
a. $850
b. $1200
c. $2475
d. $2825
e. $3250
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation price – the v..
Consider a market characterized by the following demand and supply curves: Qd = 1600 - 20p and Qs = - 900 + 30p. If regulators decide to restrict payments by setting a price ceiling equal to $35, how many units will be sold or bought? Calculate the ..
Suppose you are studying the market for shoes. Two events take place simultaneously. First, price of leather decreases, and second, consumers' income increases. What will happen to the equilibrium price and equilibrium quantity of shoes?
Suppose a firm purchases labor in a competitive domestic labor market and sells its product in a competitive international product market that covers the whole world. Domestic producers represent a small portion of the world market and have no influe..
A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6 years, at which time it is sold. How much should it sell for in order to yield a 7% effective annual return on the investment?
What economic concept illustrates the fact that at an all-you-can-eat restaurant, one rarely literally eats all the food he/she is physically capable of consuming? Explain.
the variable expend is expenditures per student, in dollars, and math 10 is the pass rate on teh exam. The following simper regression relates math10 to lexpend= log(expend). Comment on what happens to the coefficient on lexpend. Is the spending coef..
Identify market structure Identify elasticity of the product Include rationale for the following questions: How will pricing relate to elasticity of your product?
what is the value of the money multiplier given each of the following sets of values for CUR and RES? what would be the equilibrium value of total money stock assuming a monetary base of $10 trillion?
Fetzer valves can be made in either China or the United States, but because labor in the United States is more skilled, on average, than labor in China, the production technologies differ. Consider the two production isoquants in the figure. Each rep..
For each category, indicate which condition is associated with higher rivalry among competitors.
Select three presidents and research their Chief of Staff and White House advisers during their tenure as President. Create a chart comparing and contrasting how these advisers influenced each president in economics, foreign affairs, domestic policy ..
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