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Dakota Publishers prints coffee table photo books of the Great Plains and mountain states. The marketing manager generally prices books at $35 each, and sales an average of 4,000 per month. Last month, she had a sale and priced volumes at $22.50 each, selling 8,500 copies. Calculate the price elasticity for these books. Describe how elasticities should be used in pricing decisions. If you were responsible for setting the price of these volumes, what would you choose and why?
Formulate a linear programming model for this problem and prepare the initial tableau if the problem is to be solved using simplex
It is supposed that the liquid soap market is perfectly competitive and current price of a case of liquid soap is $42.00. The firm has estimated it's marginal cost function to be as follows: MC=0.006Q.
what would this price be in order to eliminate the deadweight loss. Show and explain. Why would the monopoly not charge this price? Show and explain.
For each of the following state whether you would make an aggregate demand or aggregate supply diagram and forecast what shift each condition would cause in the AS or AD curve and why so.
What happens in the market for oranges if there is a hurricane that destroys the orange crop and explain why is strategic interdependence important for market structure of oligopolies?
Consider a firm with total short-run cost function C=a+b.Q. New legislation means that it should pay an environmental tax which is the fixed sum, independent of whether it produces any output.
Using two graphs, show consumer surplus before and after government intervention.
Describe the meaning of the term "mutual interdependence" as it applies to oligopolies. Provide an example.
Research the current demand for a good or service of your choice. Collect information that will affect the demand for the good or service.
Frederic Bastiat (1801 - 1850) was a French political economist famous for exploding popular economic misconceptions
Give two reasons for (20 points) and two reasons against backing a currency with gold. Then develop your position either for or against backing the US currency with gold and substantiate your assertions.
Dsecribe a complete business cycle (trough, peak, expansion, recession), focusing on what happens to output, investment, employment in each phase.
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