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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 bottom line?
Assume a $6 excise tax is imposed on the good. Conclude the new equilibrium cost also quantity.
Illustrate happens to the amount of debt held by the public. Illustrate what happens to the level of gross debt.
A construction company is bidding on a project comprising five high-rise buildings to be erected one after the other.
An average worker in Brazil can produce an ounce of soybeans in 20minutes and an ounce of coffee in 60 minutes, while an average worker in Per can produce an ounce of soybeans in 50 minutes and anounce of coffee in 75 minutes.
Use the orange points square symbol on the graph below to plot the short-run industry supply curve for the wheat industry.
Will the brothers gain if they specialize. Illustrate your answer with an example.
According to comparative advantage, in which industries would you recommend the country to specialize. Has the country specialized in your suggested industries.
Among which of the following receives government subsidies that are in place to protect the population rather than for economic reasons.
It comes to global expansion and setting up affiliates aboard, how is a service company's focus different from that of a manufacturing company
Compute how many acres, hectares each person wold occupy if all U.S. residents.
Illustrate what conclusions can you draw about the similarities and differences between the EU and globalization.
Consider we did technological change in the class where it does contribute to one side of the production use that to understand the problem.
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