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Suppose that Neptune Music has the copyright to the latest CD of the Heavy Iron band. The market demand curve for the CD is Q = 800 - 100p, where Q represents quantity demanded in thousands and p represents the price in dollars. Production requires a fixed cost of $100,000 and a constant marginal cost of $2 per unit.
a. What price will maximize profits?
b. At that price, how will be the sales?
c. Illustrate what is the maximum profit?
d. Suppose that the fixed cost rises to $200,000. How would this affect the profit-maximizing price?
Why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal amount.
This is the conclusion reached by the reporter who covered the vigorous price competition between Borders also Barnes & Noble in Fort Worth region during the 2006 holiday shopping season.
Calculate the deadweight loss from the tax. Elucidate the tax be defensible in spite of the deadweight loss.
the industry that this claim were untrue, what critical questions could you ask about the HHI used for the study
An athletic director was once quoted as saying that he felt his school spent too much on athletics but that it could not afford to stop.
Explain how businesses create value by integrating the production and distribution of goods, services, and information.
Elucidate why housing is expensive around campus and use the concept of implicit cost to justify students' hesitation to move away from campus.
Explain how would a low-cost price leader enforce its leadership through implied threats to a rival. Provide at least one example of such a strategy.
Elucidate how does the price of fertilizer compare to the average total cost, the average variable cost also the marginal cost of producing fertilizer.
Elucidate, using diagrams where appropriate, explain how the averege costs of a firm may vary short period and long period.
Which of the subsequent is directly included in the calculation of the GDP?
Please use this discussion board to describe the events that characterized the onset and deepening of the financial market.
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