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For a manufacturing firm, and ideal output would be the one that resulted in MR=MC. But is it possible in the real world or is just theory? Also what should the firm do to establish ideal pricing, assume if the MR = MC is just a theory?
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8 percent a year, a debt-equity ratio of .45, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.3. Required: What profit margin must ..
Assume the demand for real money balances is a function of real income, only. Additionally, assume the money supply and real income are constant and assume we expect inflation to rise in the future. Based on these assumptions and the quantity equatio..
q1. why do proponents of active policy recommend government intervention to close an expansionary gap? briefly
Suppose and economy described by the Solow model has the following production function: Two neighboring economies have the above production function, but they have different parameter values. Atlantis has a saving rate of 28%, and a population growth..
Elucidate which firm's product provides the greatest value-created.
You are given the following information: (a) Your firm’s demand equation is defined as follows: Q_d=100-4P_A+2P_s+.1I, where Q_d is the quantity demanded for your product, P_A is the price that you charge for your product, P_s is the price that a com..
Suppose the demand and supply curves for product are given by: Qd = 500 - 2P and Qs = -100 +3P. I need to graph the supply and demand curves, b. find equilibrium price and quantity,
The subsequent cell-phone offer by Sprint is typical of Illustrate what one can get on a cell phone plan. Illustrate what is marginal cost.
The manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months
Discuss/justify the following statement: “When a change in a country’s nominal interest rate is caused by a rise in the expected real interest rate, the domestic currency appreciates. When the change is caused by a rise in expected inflation, the cur..
You open your browser and you click on a URL. Assume that the webpage associated with the URL consists of a small HTML file and 2 small images, all stored on the same webserver. Let RTTcs be the RTT from the client host to the webserver containing..
Explain how MR and MC are used to determine the optimal (maximum) allocation of resources to a particular product? Assume a position of business manager in certain firm. You just realized that MC exceeds MR. What will be your decision in allocating r..
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