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In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q=180-10P, where P is in dollars. The marginal cost function of all the small salons together is SMCf=4+0.1Q, and the marginal cost function on the dominant or leading salon is MCL=7+0.1Q.
What would be the best level of output and price if the large salon did exist in the market but operated as a perfect competitor, just like the small salons?
Suppose the CFO of a German corporation with surplus cash flow has 1 million Euros to invest. Suppose that interest rates on 1-year CD deposits in U.S. banks
Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4. Find out the optimal values of both goods (Y*,X*) and Utility?
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
Evaluate the range of marginal revenues
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
Assume labor is the only cost of production and labor coefficients (hours of labor required per unit of output) in MACONDO and KRYPTON for each good are as follows:
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
A profit maximizing firm produces three products X, Y and Z. The firm has no costs. There are three customers 1, 2 and 3. What will be the price of each product if the firm decides to sell them separately?
Define and describe the difference between the absolute advantage and the comparative advantage.
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets-What is the optimal level of production of wine decanters?
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
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