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A firm is developing a new product. An early introduction (beating rivals to market) would greatly enhance the company's revenues. However, the intensive development effort needed to expedite the introduction can be very expensive. Revenues and costs associated with the new product are given by:
R = 720 - 12t
and
C = 600 - 20t + 0.2t2
where t is the introduction date (in months from now). Some executives have argued for an expedited introduction date, 15 months from now (t = 15). Do you agree? What introduction date would you recommend?
given the following variables in the open economy aggregate expenditure model, autonomus consumption=200, autonomus investment=200, government spending=100, export spending=100, taxes=0, marginal propensity to consume=0.8
Calculate total revenue, marginal revenue, marginal cost, and average cost at each level of sales fo the store. If Swim N Style is a profit maximizer, what number of suits will it sell per hour? What will its price and profit be? How can you tell wha..
A retailer finds that the demand for a very popular board game averages 100 per week with a standard deviation of 20. If the seller wishes to have adequate stock 95% of the time, how many of the games must she keep on hand
Suppose a uniform pricing monopolist's price equation is P(Q) = 50 - 0.5Q; the uniform pricing monopolist's marginal revenue is MR(Q) = 50 - Q; the uniform pricing monopolist's total cost is C(Q) = 0.5Q2 + 10Q + 75; and the uniform pricing monopol..
Suppose "miles driven" is expected to fall by 2% and new auto sales to fall by 13% (due to forecast recession). What is the predicted change in the sales quantity of tires If actual tire sales dropped by 18% would this be surprising
Suppose thatY1,Y2,Y3 is a sample of observations fromN(μ, s2) population but that Y1, Y2& Y3are not independent. In factsuppose: Cov(Y1Y2)=cov(Y2Y3)= cov(Y1Y3)=0.5s2 Let Y(y-bar)= (Y1+Y2+ Y3)/3
In 1989, the Detroit Free Press and Detroit Daily News (the only daily newspapers in the city) obtained permission to merge under a special exemption from the antitrust laws. The merged firm continued to publish the two newspapers but was operated..
Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spending multiplier is called the balanced-budget multiplier
design two packages for the second-degree price discrimination case so that the first package has quantity 8 for the high demand and the second one has quantity 6 for the lower demand such that the low demand group has consumer surplus at least $5..
The price in a market is dominated by two firm is affected by the quantities supplied by both firms, Q1 and Q2: P = 120 - (Q1 + Q2). The marginal cost for the two firm is identical and constant and equal to 20.
Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The production-possibilities schedules in the table below describe their potential output in tons per year. (a) What is the opportunity cost of pearls on..
elizabeth M. suburbs makes $200 a week at her summer job and spends her entire weekly income on running shoes and designer jeans, because these are the only two items that provide utility to her.
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