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12 You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses' prospective, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering the market, and existing firms operate under the assumption that the rival will hold output constant. The inverse market demand for computers is P = 5,100 - 5Q and both firms produce at a marginal cost of $750 per computer. Currently, Black Spot earns revenues of $6.38 million and profits (net investment, R&D, and other fixed cost) of $1 million. The engineering department at BlackSpot has been steadily working on developing an assembly method that would dramatically reduce the marginal cost of producing these high-powered computers and has found a process that allows it t manufacture each computer at a marginal cost of $500. How will impact BlackSpot's bottom line?
If summer's supposition is correct, then we should expect for wealthier countries to have cleaner environments other things equal.
Converse the latest equilibrium price also quantity to result from these changes.
Everyone who has baked with the new flour loves it, but she is having trouble getting potential consumers to the desire stage of the AIDA concept.
Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.
Using the midpoint method the price elasticity of Demand for a good is computed to be approximately
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The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
Illustrate what marketplace structure is more beneficial for Wonks to operate in also will this be the same marketplace structure which will benefit consumers.
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
Suppose that there is a unit mass of consumers who are uniformly distributed on the segment[0,1]. Two firms are located on the line and sell identical products.
The Fed announced in April 2011 to it will continue the ‘quantitative easing' by completing the purchase of government securities by the amount of $60 billion.
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