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Wal-Mart charges $20 for the new Ghostbusters DVD and sells 400 copies per month. Then they reduce their price to $18, and sell 500 per month. Assuming a linear demand curve, find the optimal price to charge if the goal is to maximize revenue. (Note: the price does not necessarily have to be $20 or $18.) Show all work.
How many parts must be produced each year to just break even? (Use AEC equation)
Calculate the amount of tax collections that the government will require in period two. If so, compute it; if not, explain why not.
The trade or business of manufacturing dolls and accessories
Economists have typically thought of the money supply as an exogenous variable; however, many would argue that it really should be treated as an endogenous variable. What’s the di?erence? Also, what does endogenous money mean for the Fed’s ability to..
Describe a situation in which there is an economic argument for regulation the quantity of pollution reduction in order to achieve reduced pollution levels rather than using a tax.
Cameron is currently unemployed and without health insurance coverage. He derives utility (U) from his interest income on his savings (Y) according to the following function: U(Y) = 10(Y^[1/2]) Cameron presently makes about $10,000 of interest income..
Comment on this trade-off between equity and growth. Explain how would you go about resolving the issue if you were the president of a small poor country.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
Stagflation is caused by
In turkey, many shopping mall owners charge different rental rates on their tenants. The shops of local and relatively unknown brands pay higher rental rates per square meter than the international and famous brand shops. Local shop owners protest th..
The Hanover Manufacturing Company believes that the demand curve for its product is-Evaluate the wisdom of the firm's pricing policy. A marketing specialist says that the pricing elasticity of demand for the firm's product.
At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firms plant in Jackson. The Jackson plant current loses $60,000 monthly. should the jackon plant be closed or continue to operate at a loss in ..
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