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A firm has $2.5 million in sales, a Lerner index of 0.67, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
What price does this firm charge its customers? SHOW all work
By what factor does this firm mark up its price over marginal cost? SHOW all work
Do you think this firm enjoys much market power? Explain
Compute the point elasticity of demand at this TR-maximizing price also quantity. Does the elasticity have the expected value.
What he didn't foresee was that number of T-shirt stores in South Padre would jump from roughly 10 to 40 within two years. Now he laments.
Cara has available h = 3000 hours per year for participating in the labor market and for leisure. She gets a wage w = $18 for the first 2,000 hours of work. If she works more than that, the wage on the additional hours is increased by 50%. She receiv..
Identify one product for which consumers normally have elastic demand and one product for which consumers normally have inelastic demand. (Use examples that are not found in the textbook.) Do either of the products that you identified have any close ..
q.firms often face the problem of allocating an input in fixed provide among different products. find out the optimal
Suppose you purchase a 30-year, zero-coupon bond with a yeild to maturity of 6%. You hold the bond for five years before selling it. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return on your invesment? If the..
What does a nation’s unemployment rate indicate? Describe what type of unemployment you think each of the following illustrates:
People respond to images from their culture. Consider that the leading automobile maker wants to use an animal as an image in their advertising for a new line of fuel-efficient, hybrid vehicles. Take three paragraphs and pick two animals you think wo..
Why has the application of the World Bank's standard Structural Adjustment Policies been counter-productive in many developing countries?
Review three or four key principles that are important in understanding a Biblical view of business ethics. Give examples of how you have (or might in the future) apply these principles.
In general, the marginal cost (MC) curve is U-shaped as you learned in the lectures and the textbook. However, exception exists. Please provide at least one industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC..
A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss o..
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