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NonLegal Seafoods (NS) sells its excellent clam chowder in Boston, New York, and Washington. NS has estimated that the demands in these three markets are respectively QB = 10,000 − 1,000PB, QNY = 20,000 − 2,000PNY and QW = 15,000 − 1,500PW, where quantities are pints of clam chowder per day. The marginal cost of making a pint of clam chowder in their Boston facility is $1. In addition, it costs $1 per pint to ship the chowder to New York and $2 per pint to ship to Washington.
a. What are the profit maximizing prices that NS should set in these three markets? How much chowder is sold per day in each market?
b. What profit does NS make in each market?
A bank proudly announces it has switched to continuous compounding on savings accounts and if you now make a deposit of $10,000 the value of your account will double to $20,000 in 10 years. What is the annual effective percent rate?
You are selected by the board of Alderman in your hometown to help the lawmakers in establishing a program to raise new revenue through excise taxes. Why would elasticity of demand be important to you in determining the products on which taxes should..
What will happen to real GDP and to the amount of labor employed, aggregate consumption, and aggregate savings? Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
An individual consumes only two commodities X and Y. She prefers a bundle B1 with 6 units of X and 2 units of Y to a bundle B2 with 4 units of X and 7 units of Y. Also, she prefers a bundle B3 with 2 units of X and 8 units of Y to B1. Are these prefe..
Problem: Table Illustrates the supply and demand schedules for calculators in Sweden and Norway. On graph paper, draw the supply and demand schedules for each country.
What U.S. government policy has had a distortionary impact on corn production? Describe the far-reaching effects of this policy on the beef industry, illegal immigration and everyday consumer products.
One of the basic facts of financial markets is that financial intermediaries, particularly banks, are the most important source of external funds used to finance business. Explain the reasons from what we learned in Chapter 8 from Money, Banking and ..
What services do you predict Bangalore India exports and what services do you predict it imports.
Elucidate your reasons as to whether oligopolies are bad for society in part a and how it applies to the beer industry in part b. Submit your analysis in a one to three page paper.
A farmer’s field grows 30 bushels of corn and 10 bushels of beans. The farmer can either consume these crops herself or trade them, with one bushel of beans being traded for one bushel of corn. Graph the farmer’s budget which is the possible combinat..
At the end of the life of the project, the equipment can be sold for a profit with salvage value of 11,000. The MARR is 6.0 percent. Calculate the present worth.
???According to Keynes, why might deflation create problems for an economy?
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