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A monopoly is considering selling several units of a homogenous product as a single package. A typical consumer’s demand for the product is Q^d = 50 - 0.25P, and the marginal cost of production is $120.
a. Determine the optimal number of units to put in a package.
Elucidate economists use two major approaches to estimate incremental environmental costs. Which in your view likely produces the most reliable estimates.
A consumer, D Carroll, spends all of his income on 2 goods X and Y. The 2 goods are both normal but are not complementary. The price of good X is reduced but the price of good Y is unchanged. The consumer continues to spend all of his income on th..
Last month, Rick's Bike Shop, Inc. increased the price on the 22-ounce can of Camp A bearing grease by 4.5 percent. In response, sales dropped by 9 percent. A) Calculate the point price elasticity of demand for Camp A bearing grease. B) Calculate t..
Suppose we consider the woman's labor market experirnce EXPER and its square EXPER2 , to be instrumental for WAGE . Explain how these variables satisfy the logic of insrumental variables
Use the line drawing tool to draw a line showing the relationship between the number of deliveries (on the horizontal axis) and your total cost (on the vertical axis). Draw the lnie between zero and 20 delieries. Label this line 'Cost'.
Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market?
Assume first that Apple were to sell only 4GB iPods after all,they cost the same and some consumers prefer more than less. What is the optimal price for a 4GB iPod.
rise in government spending increase employment and aggregate output in the short-run. Show graphically and use the GDP equation to support your answer.
The Government budget has been making at a deficit of approximately $60 billion for the last year, up from $50 billion the previous year.
Explain the difference between saving and investment as defined by a macro economist. Which of the following situations represent investment? Saving? Explain.
Assume the basis for the trends in consumption patterns as discussed in the article. Discuss what has occurred to change the demand for, or the supply.
Elcidate how slower inventory turnovers, slower receivables collections, or faster payments to suppliers would influence the numbers produced by a cash budget.
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