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We say that MR= MC is the optimal point, beyond that there may still be profits, but it would not be optimal. Why would a firm, then want to continue to produce pass the optimal point?
A young couple is purchasing a new sport utility vehicle. The price of the new vehicle is $28,300, sales tax is 7.5%, title and registration will cost $105. The dealer is offering a special finance rate of 1.9% APR for 36 months (compounded monthly)...
what will happen in the market for personal computers? How will the equilibrium price and equilibrium quantity of personal computers change?
The largest component of total spending is
Consider the basic flexible-price, market-clearing model (which satisfies the Classical Dichotomy) in which r and Y are constant as long as there are no shocks to preferences or technology. Show the money-market clearing condition which determines th..
Illustrate what is probability first two electric toothbrushes sold will be returned to drugstore because y are defective. Explain how all work, formula and answer.
Show that a risk-neutral person would prefer a 0.8 chance of winning 4,000 to a sure payment of 3,000, and that the same person would prefer a 0.2 chance of winning 4,000 to a 0.25 chance of winning 3,000.
Some firms with monopoly power are more focused on market share, size and influence in the economy. This is particularly true if there is a tendency for ownership (stockholders) and control (managers) to be separated.
In a particular industry, labor supply is Es = 10 + w and labor demand is Ed = 40 – 4w, where E is the level of employment and w is the hourly wage. What is the equilibrium wage and the employment level if the labor market is competitive? What is the..
Heinz makes most of its money from ketchup and? prepared, packaged foods that are substitutes for fresh foods. Revenue tends to be low in the second quarter?(May, June, and? July). Can you provide a possible reason for this? pattern?
Outline for the investors which form of organization (from the list of six under the first bullet) would be the least suited and why?
If you were boarded on an airplane that had already started taxing for takeoff when the plane suddenly stopped and turned around and the passengers were told to exit immediately because the airplane had gone out of business, and they were left str..
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.5 million. In your market, you compete against two other deal..
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