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Now assume that the firm is divided into two profit centers: the assembly division and the distribution division. The assembly division assembles the product at a total cost of 500 x Q and then transfers it to the distribution division that faces the firm's demand curve. The distribution division has no costs other than the transfer price and the distribution costs for the product. Assume that the assembly division has the power to set the transfer price and that the distribution division can only buy internally. The distribution division, however, can select the quantity to purchase.
a. Identify/describe the distribution division's problem.
b. Solve the distribution division's problem.
The first level of negotiation has happened and has concluded with you submitting a proposal consisting the following key points: What is your strategy as the university’s representative? What strategy do you think your counterparts will use?
Calculate the consumers surplus at the indicated unit price (a) for the the demand equation.
q1. at equilibrium price an item is selling for 30 a unit. at this price consumers demand 100 units. if government
Draw diagrams to explain how shifts in aggregate supply and demand are likely to lead to changes in output and inflation when:
Elucidate what would the seller's cost of capital have to be in order for the discount to be cost-justified.
Was innovation accelerated or suppressed by the government monopoly granted to Fulton? Why? How did innovation change after the monopoly was broken? Give one or more examples of modern companies that are producing value in restricted markets, like Va..
When a Denver resident purchases a Coors beer (brewed and bottled in the USA), this represents a:
Mr. Otto Carr, owner of Otto’s Autos, sells cars. Otto buys autos for $c each and has no other costs. What is his total cost if he sells 10 cars? What if he sells 20 cars? Write down the equation for Otto’s total costs assuming he sells y cars: TC(y)..
Estimate the macroeconomic implications and microeconomic consequences of a monopolistically competitive firm or an oligopoly firm filing for bankruptcy.
The Chinese government managed the value of the chinese yuan relative to the US.between 1995 -2005 the yuan was pegged to the dollar at a rate of 8.28 yuan per US. China's central bank is responsible for using monetary policy to defend the fixed exch..
Illustrate what is your advice to the Canadian government about which market structure to choose for pasta industry.
In 1974, the price of a first class postage stamp was 10 cents, a loaf of bread averaged 28 cents, gasoline was 53 cents per gallon, and the average price of a new car was $3500. In 2014, the postage stamp was 49 cents, a loaf of bread was $2.46, gas..
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