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Suppose you run a firm in a perfectly competitive industry and would like to learn about what your competition is doing. You know that one of your competitors produces a single output using several inputs. The price of output rises by $4 per unit. The price of one of the inputs increases by $2 and the quantity of this input that the competitor uses increases by 8 units. The prices of all other inputs stay unchanged. What can you deduce about the output of your competitor? Will it stay the same/increase/decrease/by how much?
Appledale Dairy is considering upgrading an old ice-cream maker. Upgrading is available at two levels: moderate and extensive. Moderate upgrading costs $6500 now and yields annual savings of $3300 in the first year, $3000 in the second year, $2700 in..
How does the role of inflation affect decisions that you have to make? What is the unemployment rate in your local area and in your state? How does this compare to the national average and why is this rate so important to evaluate?
Country X has an $8000 billion GDP and a population of 200 million. Country Y has a $6000 billion GDP and a population of 150 million. Which of the following is true? Full employment is: If the GDP deflator is now 125, we may conclude that since the ..
Which of the following is an impact of the Internet on consumers' shopping behavior??
Assume that the price of housing in Corpus Christi is normally distributed. Based on our random sample of 23 houses we surveyed, we calculated that x = $299,756.2 with the standard deviation s = 107.11. If we know that the population mean, mu = 299,7..
Elucidate why the first mover will not install a capacity less than 6 or greater than 12.
Suppose a manufacturer produces a product that it sells to retailers who sell it to consumers. Consumer demand for the product is given by inverse demand curve: P = 100 – Q. The marginal cost of production for the manufacturer is 20.
What are the role of venture capitalists, how are they formed and how do they generate revenue? What impact do venture capitalist play in State Public Employee Pension Fund shortfalls (Specifically in PA)?
Assuming that the quantities of human and physical capital per worker did not change, and that the exponent on land in the production function is one-third, calculate the growth rate in productivity over this period. What was the annual growth rat..
Jack's construction company is considering the purchase of new equipment at a cost of $10,500; with an estimates salvage value of $500 and projected useful life of 4 years. Determine the straight-line (SL), sum of year's- digit (soyd) and double decl..
You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition.If this legislation is passed, by how much should you expect your profits to chang..
An island economy produces only two goods, apples and bananas. There are five people (A,B, C, D, and E) living on the island with these preferences: For each of these five individuals, construct several representative indifference curves with apples ..
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