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Suppose a gas station at a busy intersection is surrounded by many competitors, all of which sell identical gas. Draw the demand curve the gas station faces, and draw its marginal and average cost curves. Explain the rule for maximizing profit in this situation. Now imagine that the gas station offers a new gasoline additive called zoomine, and begins an advertising campaign that says: "Get zoomine in your gasoline." No other station offers zoomine. Draw the station's demand curve after this advertising campaign. Explain the rule for maximizing profit in this situation, and illustrate it with an appropriate diagram.
A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the ..
What is the temporary and permanent impact of an increase in prices on wages based on these results? How would we test if the permanent impact of a price change is statistically significant?
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
marginal airlines runs 10 flights per day at a total cost of $50,000, including $35,000 in fixed costs for airport fees and the reservation system and $15,000 for flight crews and food services. If an 11th flight would have 20 passengers, each pay..
Could conflict minerals be excluded from the global supply chain without hurting the noncombatant citizens of the DRC?
The cost function is given by c=100+20q+4q^4 Provide the output, fixed cost, variable cost, total cost marginal cost, average cost, average fixed cost, and average variable cost using integer values from q=1 to q=4.
a. Calculate the average product of labor, APL and the marginal product of labor, MPL. b. If workers at the firm are paid a competitive wage of $100 and the product is sold for $200 each, what is optimal level of labor usage and what is the maximu..
Discuss the new equilibrium price and quantity that result from these changes
anderson county has 35 older-model school buses that will be salvaged for $5,000 each. these buses cost $144,000 per year for fuel and maintenance. now the county will purchase 35 new school buses for $ 40,000 each.
The stock volatility of 1.19 is somewhat higher than that of other public firms in the construction industry, and other stocks in this market are paying an average of 4.95% per year dividend. U.S. Treasury bills are returning 4.5%
What is the value of your income elasticity of demand for eggs? Are eggs normal or inferior good to you?
What idea is the speaker in the poem trying to convey?
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