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You are the manager of a monopolistically competitive firm. The present inverse demand curve you face is P = 100 – 4Q (MR = 100 – 8R). Your cost function is C(Q) = 50 + 8.5Q2 and MC(Q) = 17Q.
What level of output should you choose to maximize profits?
What price should you charge?
What will happen in your market in the long run? Explain?
A unique aspect of a market economy is that consumers and firms change their behavior largely in response to:
Microsoft wants to sell more copies the additional income from each additional copy it sells.
How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect? Which is a better investment?
In "The Consequences of Mr. Keynes," James Buchanan and Richard Wagner argue that the "unwritten fiscal constitution" of an annual government balanced budget helped restrain the growth in government, but the Keynesian argument for a balanced budge..
Determine the equilibrium price and quantity. Outline the significant factors that could cause changes in supply and demand for the product
Each firm can monitor the other's price very closely and can respond instantly
The city of Morse recently completed the construction of a bridge across the Ohio River at a total cost of $133,453.95. The length of the bridge is 276,389 feet. The city of Edison three miles up river wants to build there own bridge which have to be..
q1. why may vertically integrated delivery systems lead to lower productions costs? why may these systems lead to
Describe why some long-run average cost curves are steeper on the downward side than others.
Discuss the advantages and disadvantages of using divisional profits as the basics of incentive compensation for fivision managers compared to using company profits as the basis.
Barbara’s utility for 2 goods X and Y is given by U(x, y) = x^0.6y^0.4. Let I denote income and px and py denote the prices of good X and Y respectively. What is Barbara’s gain in consumer surplus if price of good X decreases from $20 to $15
at a time when demand for ready-to-eat cereal was stagnant a spokesperson for the cereal maker kelloggs was quoted as
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