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Suppose that 3 countries who form a cartel agreed to divide the oil market equally. Demand for oil is given by P=50-.1Q where P is the price of oil in dollars per barrel and Q is the Quantity in thousands of barrels per day. Each of the 3 countries in the cartel has marginal cost given by MC=30. What is the price of oil and quantity of oil produced by each cartel mamber?
The owner of a small car-rental service is trying to decide on the appropriate numbers of vehicles and mechanics to use in the business for the current level of operations. He recognizes that his choice represents a trade-off between the two resou..
The Texas Family Assistance Program (a social welfare program) offers cash transfers to low-income families. Suppose that the maximum transfer is $20 for households without income; for each dollar earned, the transfer is reduced by $0.50.
In a local market, the monthly price of internet access service decreases from $30 to $20, and the total quantity of monthly accounts across all internet access providers increases from 90,000 to 190,000.
Using the similar 6-economic indicators selected for your Industry Overview Paper, differentiate at least two year forecasts from two separate sources,
A mechanical engineer who recently graduated with a master's degree is contemplating starting his own commercial heating and cooling company. He can purchase a Web Page design package aimed at delivering information only for $1,000 per year.
Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings
you can invest in a project with returns that depend on the amount of your investment. Specifically, the formula relating next year's payoff to your investment today is C1=(-C0 -0.1)^(1/2), c1 c2 are in million dollars.
State carefully the ceteris paribus assumption in this case. Do you think this simple regression of Y on X satisfies that assumption? Why or why not?
Consider a worker who is paid a wage of $20 per hour. The worker has a disutility h^2 of working h hours. Assume that the worker faces a tax rate t. Thus, his net (after-tax wage rate is $20 (1 - t)). How many hours will the worker work if his obje..
The more people decide to hold currency, the A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with the Fed, and $5 million in government securities. The required reserved ratio is percent.
Consider that the U.S. supply of ethanol follows the function S(p) = 5p, and that the US demand for ethanol is D(p) = 13.5 - 2.5p. Without any government role, there are in equilibrium 9 Billion gallons/year transacted at a price of $1.80/gallon.
Suppose you currently run one shift at your plant. You have $1,000 per day in administrative overhead and the daily wages and materials cost of operating the shift are $30,000. If you expand to two shifts, your average cost per-shift.
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