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In article of about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should rise its price from 50 cents to 75 cents, which he estimates would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation should drop sharply after a price.
I have a production function Q=f(L,K)= 2L+4K. The cost of each unit of L labor is 10 and the cost of each unit of capital K is 18. Assume the gift boxes are currently selling for $4 each. Determine the profit-maximizing quantity Q for this company. A..
Sketch the firm's isoquant and isocost lines and show its current equilibrium in the use of labor and machines when producing 200 gizmos per month.
Stating that the appliance was the best bet available, Elmo, a door-to-door salesman, entered into a contract to sell the Walton family home freezer unit on credit. The total price with interest was $900, although the freezer had a retail value of ap..
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition?
In the movie Princess Bride, the hero disguised as the pirate Westley is engaged in a game of wits with the villain Vizzini. Westley puts poison in either his own glass of wine or in Vizzini's glass. Construct the payoff matrix for this game. Assume ..
When the price level is low and the demand for domestic goods increases, how does it affect international trade?
The oil price shock embodied an inflation rise of 3 percentage points and inflation turned out to be 1.5%. What effect did the financial crisis have on the unemployment rate?
Three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible PC operating system is extremely large and stable. Second, Microsoft's dominant market share is protected by high barrier to e..
The Stolper-Samuelson theorem states that: A) free international trade increases the real income of the nation's relatively scarce factor and the nation's relatively abundant factor. B) free international trade increases the real income of the nation..
The velocity of money might increase around the holidays because people: If the Federal Reserve wants to avoid inflation in those times, it should:
Suppose state income taxes and local income taxes are treated as expenses for purposes of calculating federal taxable income and hence federal income taxes. Determine the effective income tax rate when the federal income tax rate is 31%, the state in..
The PSNOI company manufactures blue and white sweatshirts. This week the price of the sweatshirts increased from $90 to $100. The quantity sold decreased from 200 to 173. Is the change in price elastic, inelastic, or unitary? [Show your work and expl..
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