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Assume a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3/gal. Find the optimal number of bottles to package together for sale and the profit-maximizing price to charge for the package. Find the solution and show it graphically.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Illustrate what are the major differences among an open and closed economy
Depends on what you perceive as the results of free trade agreements such as NAFTA, would you recommend that President Obama continue on the path.
Mention four key points from the reading assignments that were emphasized in the simulation. Find out how price elasticity of demand affects the decision making of the consumer and of the organization.
A new taco-making machinery which is similar in size and cost to hog dog carts has encouraged more street vendors to begin selling tacos.
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development. Illustrate what condition would encourage research and development in..
There is no Constitutional needs which individual states must accept monies offered by federal government to support requires affecting their citizens.
Explain how has the introduction of females also minorities in the corporate structure impacted the supply of labor and the economy.
Decide if the values of the goods produced are included in the 2006 GDP and explain your reasoning.
Elucidate the own price elasticity for ATM fees charged to non-customers. At the current ATM fee, should you raise or lower your ATM fees.
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