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The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer’s inverse demand for your bran muffins is now P = 8 - 1.5Q. If your cost of producing bran muffins is C(Q) = 0.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price.
The state has announced its plans to license two firms to serve a market whose demand curve is given by ? = 100 ? The technology is such that each can produce any given level of output at zero cost, but once each firm's output is chosen, it cannot be..
You are advising a software firm on developing appropriate disclosure policies. You spend some time analyzing the past data that the firm has made available to you and come up with the following numbers for a typical software product.
You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond?
Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase taxes?
If the farmer rented her land from a landowner, would she have the same incentives to control soil erosion. Illustrate would the landowner have an incentive to control erosion.
i firms often face the problem of allocating an input in fixed supply among different products. nbspfind the optimal
Assume a US saver with $1,000 to place in a domestic or European bank CD. The interest rate for US and European savings equals 4%. If the saver keeps her money in the US, her return equals ____. If the saver moves her money to Europe with a forward t..
A professor owned a home next door to a very dilapidated, neglected home. John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property. Do you think the professor will be succes..
Assume that the central bank of an economy contracts the money supply.
Illustrate what would the peso-dollar exchange rate be if purchasing-power parity holds. Explain how can the organization use technology to change this balance for an advantage.
do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
Explain each of the four components of GDP. An individual has 10$ million on deposit in a financial institution drawing interest. That individual has no reason to fear inflation or recessions.
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