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Consider a subway company whose cost function is given by C(T) - 1000 + T. Due to the government regulation, this company must set the fare per passenger at the marginal cost (MC pricing). Is this pricing efficient? Would this company run the business under this regulation? Explain your answer and suggest a possible policy to solve the problem if applicable.
Apple and Samsung are competing in a duopoly. If both companies charge a high price, they each earn $900 million in economic profit. If both companies charge a low price, they each earn $500 million in economic profit. Construct a payoff matrix displ..
question 1the difference between game trees and decision trees isselect onea. that game trees are not useful in
What is the optimal capital/labor ratio? If the firm can spend a total $320 in K and L, what is the optimal amount of K and the optimal amount of L?
compute the monthly rate of inventory growth in the global aluminum market using the given demand and supply equations for the world aluminum market.
1. The table below gives Bob's income and the price index for the last 4 years. Respond to parts a.
q1. assume that the reserve requirement is 25 percent. if a single bank has excess reserves of 500000 explain
Nutritional Sciences LLC sponsor the “Quarter Million Dollar Challenge,” a contest requiring contestants to use the company’s nutritional products and training plants to lose weight and get in shape during A 13-week period. A panel of judges would se..
illustrates the likely effect on the marketplace for eggs. Indicate in each case the impact on equilibrium cost also equilibrium quantity.
Today, most of our monetary transactions are done with plastic or via bank apps, all of which are easily tracked. Even craft vendors at small town festivals use apps on their smart phones and tablets to accept cashless payments. What behaviors would ..
In response to the recession of 2008, the US Federal Reserve Bank made several efforts to increase banks excess reserves, decrease interest rates for lending, and increase lending. These "extraordinary measures" have been somewhat controversial (at l..
Cathy has one year left before she completes her degree in industrial engineering. She is spending this summer working for her family's firm, MMM (Molehill & Mountain Movers). MMM runs a fleet of heavy construction equipment and sells gravel for road..
Discuss the pros and cons of keeping the federal funds rate near zero percent. Do you think the Federal Reserve was ever concerned about facing a liquidity trap? Yes or no? Discuss.
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