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An industry produces its product, Scruffs, at a constant marginal cost of $50. The market demand for Scruffs is equal toQ = 75,000 - 600P
a. What is the value to a monopolist who is able to develop a patented process for producing Scruffs at a cost of only $45?
b. If the industry producing Scruffs is purely competitive, what is the maximum benefit that an inventor of a process that will reduce the cost of producing Scruffs by $5 per unit can expect to receive by licensing her invention to the firms in the industry?
A company has an annual requirement for 150,000 parts, which cost $125 each. The parts require processing having a $4,000 setup cost. Each part occupies 0.5 sqft of floor space in the factory. Floor space has a total cost of $12.50 per square foot..
The price in a market is dominated by two firm is affected by the quantities supplied by both firms, Q1 and Q2: P = 120 - (Q1 + Q2). The marginal cost for the two firm is identical and constant and equal to 20.
An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs.
Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function: P = 200 Â- Qa - Qb Where Qa and Qb are the quantities sold by the respective firms.
2-you find $1000 worth of old coins while you are mountain climbing in Colorado.You promptly deposit the coins in your Checking account. if the reserve requirement is 10%, how much money did you ultimately create
Find the dimensionless equation and suggest an expression for the solution in dimensionless form.
You are told that the multiplier for government spending is 2 and that the effects of the increased government spending are immediate. What policy actions can be taken to put GDP back on target each period?
advanced analysis given the following diagrams q1 12 bags. q2 7 bags. q3 19 bags. the market equilibrium price point
What is investment? Why does investment decrease when the real interest rate increases? What role do expectations play in investment?
Assuming there is no way to make other residents contribute, is Eugene likely to raise the necessary $1,000? Why or why not? What could he do to improve his chances of success?
if you deposit $1000 now, $3000 four years from now follows by five quartely deposite decreasing by $500 per quarter at an interest rate of 12% per years compounded quartely. how much will you have in your account 10 years from now
A multiplicative demand function form: Qd= a*P^b1*Y^b2*Po^b3 is determine using cross sectional data and 224 observations. The regression results were given below:
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