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Q1. The price of a firm's product increases from $5 to $6. As a result, the quantity demanded of the product declines from 600,000 to 500,000. The price elasticity of demand for the good is equal to
Q2. A Los Angeles firm uses a single input to produce a recreational commodity according to a production function f(x) = 4√x, where x is the number of units of input. The commodity sells for $100 per unit. The input costs $50 per unit.
Find profit maximizing amount of output. Show all working.
If ABC adds an assembly line for the product and XYZ does not follow with a competitive product.
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Should Roscoe's Rascals match the price offered by the competitor.
How does theory hypothesize that a current account trade deficit will be resolved.
operating deficit is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand.
In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
If the nominal social discount rate is 7% and the rate of inflation is currently stable at 2 percent, should the city build either facility.
Choose on which market structure that these businesses fit - monopolistic competition, perfect competition, and oligopoly also monopoly.
Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.
What do you think that Apple's ability to control the pricing of downloaded song is likely to change in the future.
Why would an ounce of gold be priced higher than an ounce of coffee beans though coffee is generally considered more essential than gold
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