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Suppose Sammie Wall currently has a monopoly on widgets. The inverse demand function for the only customer interested in widgets is [P=40-6Q] and the cost to produced widgets can be described by the following cost function: [C=10+2Q^2] . If Sammie decides to open a membership warehouse that only sells widgets, how much would she charge for a membership in order to maximize profits? (Give only the numerical answer below with no $.)
After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pri..
Evaluate the Keynesian economists, besides John Maynard Keynes. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.
What is each project's MIRR? From your answers to Parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected?
Suppose that McDonald’s overseas sales revenue in Europe totaled €10.00 billion in 2014 and is predicted to grow to €11.50 billion in 2015. From 2014 to 2015, what is the predicted growth rate of McDonald’s European revenues in terms of dollars? Expl..
Midlands Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of £410,000 on sales of £2,000,000. The company’s average operating assets f..
Elucidate how events such as the World Trade Center and Pentagon attacks described in the case study affect the aggregate demand curve.
Explain how does imposing rent controls affect the number of housing units available to low-income families
Explain how a price increase could be better for society than not raising the price of a product or service. Why does central planning not work efficiently?
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 12 countries to their current markets. If the agreement is reached, operations are exp..
The money, or financial, multiplier is equal to 1/ the reserve requirement, that is, Mk = 1/RR. Assume that RR = 20%. What is Mk? Now assume that the reserve requirement is lowered to 10%. What is the new Mk? What would happen to Mk if the RR were ra..
Describe how McDonald's and Wal-Mart elucidate changes in the macroenvironment affect individual firms and industries through the microeconomic factors of demand.
Is there a surplus or deficit in the government budget at the equilibrium level of income.
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