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A knitting shop orders yam from three suppliers in Toronto, Montreal, and Ottawa. One month the shop ordered a total of 114 units of yam from these suppliers. The delivery costs were $79, $45, and $63 per unit for the orders from Toronto, Montreal, and Ottawa, respectively, with total delivery costs of $6586. The shop ordered the same amount from Toronto and Ottawa. How many units were ordered from each supplier?
Now? suppose? that? the ?first ?firm? has? a ?capacity ?of ?2 ?and? the? second? firm? has ?a ?capacity ?of ?4.
In the first-order exponential smoothing model, the new forecast is equal to the old forecast plus a weighting factor (W) times the error in the most recent forecast.
In a third world country, the central bank wants to reduce the inflation rate by 5%. The current money supply is $2.0 trillion and the goal is to have equilibrium in the money market (Ms=Md). What should be the new target interest rate to reduce the ..
Firms in perfect competition will leave the industry if they
Explain is any outcome generated by a Nash equilibrium not generated by any subgame perfect equilibrium.
Recall the looser pay winner auction experiment done in class. discuss how these experiments explain why the bidders changed their minds toward wanting to bid well above the value of the prize, even though they refused to do so at the beginning.
Suppose which the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their monopoly of gambling.
In Chapter 11 you read about centralized and decentralized decision making. Between the two philosophies which do you feel works better and why? Feel free to include any experiences you have had under each atmosphere.
How low does the market price have to be for the firm to take a loss in the short-run? How low does the market price have to be for the firm to be better off shutting down in the short-run?
Consider the short-run production of a firm with a single output Q, a fixed input K (capital), and a variable input L (labour). Define average product and marginal product of labour. Define average variable cost and marginal cost.
The can industry is composed of two firms. Suppose that the demand curve for cans is P=100-Q where P is the price (in cents) of a can and Q is the quantity demanded (in millions per month) of cans. What are the price and output if managers set price ..
The inverse demand for this product is P = 100?Q, where P is price and Q is aggregate output. The production costs for firms 1, 2, and 3 are identical and given by C(qi)= 20qi (i= 1,2,3), where qi is the output of firm i.
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