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Suppose x1=m/(3p1).
(a) What is the numerical value of when the price of good 1 is $3?
(b) What is the numerical value of when the price of good 2 is $3?
Using existing plant and equipment, Priceless Moments Figurines can be manufactured using plastic, clay, or any combination of these materials. A figurine can be manufactured by F = 2P + 5C, where P is pounds of plastic and C is pounds of clay. Plast..
what are some things that Dalman and Lei need to know about or country and business group so that they can establish a good rapport before, during, and after discussing franchise details.
In relating to page 256 that Sears might deliberately damage its white appliance goods. Then why do you suppose that many doctors happily take on senior patients who pay less per visit than you I and I might pay? Who might come more often to see the ..
Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).
Megan used to work at the local pizzeria for $15,000 per year but quit to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $5..
What other examples can you give for international firms' product differentiation and cost cutting strategies in different markets?
In the long run, there will be no unexploited scale economies (excess capacity) in
Illustrate what will be the price of this new drink in the long run, assuming the industry is a Cournot duopoly.
Suppose that demand for rollerblades is given by D(p) = A ? p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the industry is perfectly competitive. Find..
Consider a consumer with utility function u(x1,x2) = x1x2 and income m who faces given prices p1 and p2. What is the effect of the increase in price on the consumption of good 1? How much of this effect in consumption is due to the income effect and ..
Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. What if you assign t..
You rent a car for $29.95. The first 165 miles are free, but each mile thereafter costs 16 cents. You plan to drive it 200 miles. What is the marginal cost of driving the car?
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