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If a monopolistic firm (price searcher) can sell 9 units at a price of $100 each but must reduce its price to $80 in order to sell 10 units, then
A. Demand is inelastic and marginal revenue is negative
B. Marginal revenue is falling but is above price
C. Demand is elastic and marginal revenue is positive
D. $100 is the optimal price
GM Company is considering opening a dealership in Germany, but is unsure if it can earn an 8% rate of return that is promised by an alternative investment (of similar risk). Identify and describe and three rate base misconceptions? Think of the “rate..
Suppose that hospitals use nurses (N), doctors (D) to perform surgeries (Q). The production function for surgeries is: Q = F(N;D), where F(N;D) is some function that increases in N and D. Assume that the marginal products of N and D are diminishing
An appliance manufacturer produces two models of microwave ovens: H and W. Both models require fabrication and assembly work; each H uses four hours of fabrication and two hours of assembly, and each W uses two hours of fabrication and six hours of a..
A friend tells you that you should never be a patient in a teaching hospital because the death rate among patients in teaching hospitals is higher than in other hospitals. Interpret the meaning of the regression coefficient on the explanatory variabl..
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
q.due to the global economic slowdown we were benefiting from relatively low oil prices. but because of the instability
1. What is the "middle-class squeeze"? 2. How do low unemployment rates mask the economic challenges people face in maintaining middle-class status?
Wall Street Journal costs $206, payable now, for a two-year subscription. Newspaper is published 252 days per year. What is a subscriber's cost per copy of newspaper, taking interest into account.
Assume that Wal-mart is the only employer of retail workers in a small town in Indiana. As a local non-discriminating monopsonist, Wal-mart faces a labor supply curve given by: Find Wal-Mart’s Total Labor Cost and Marginal Cost.
Explain briefly the ethical situation. What are the all the different actions you could have taken. What are the consequences of each of these actions.
The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
A comparison of two computer manufacturers found that by implementing improvements in its supply chain, one company was able to reduce its average supply of key components to only 3-6 days’ supply of inventory, as compared with their competitor, whic..
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