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1. Consider a differentiated product market where the anticipated demand functions and the cost functions of two dominant firms are given below:
X1 = 94 - P1 + 2P2, X2 = 66 + P1- 2 P2, and C (X1) = 2X1, C(X2) = 3X2
(a) Obtain the price reaction functions.
(b) Obtain the market share functions.
(c) How much do the firms produce in group equilibrium?
The first question is about profits in excess of both implicit and explicit costs and the second question is about marginal revenue being greater than average variable cost and marginal revenue being greater than marginal cost.
a firm must raise $10 million dollars in funding for a capital investment project. $2 million will be raised by issuing debt with an interest rate of 10% while the remainder will be raised by issuing stocks that will yield a return of 12%.
here is some data on the demand for lettucepricenbspnbspnbsp nbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp quantity
If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
Calculate the profit for that level of output, as well as the level of output immediately above and below it and what level of output will this firm operate at in order to maximize its revenues or minimize its losses?
Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).
The owner of a fast-food restaurant estimates that she can produce and sell 1,000 additional hamburgers per day by renting more automated equipment at a cost of $100 per day.
a. In trip calculation, it is observed that a Wal-Mart store driver successfully made a total of 104 trips in a given period of time. During field calculation, it is shown that the calculated number of trips is actually 128. What is th..
Determine several points on the firms demand curve for labor. To do this, you must determine how many workers the firm should hire for different values of the wage rate in order to maximize profit. Complete the table below:
Adam Smith wrote of, "The Invisible Hand" in economics. Give a critical evaluation of the way in which this concept has been affected by the theories of Maynard Keynes, Karl Marx, Milton Friedman and political expediency and/or dogma.
Alfred Chandler, who was a professor at the Harvard Business School, once observed: "Imagine the diseconomies of scale-the great increase in unit costs-that would result from placing close to one-fourth of the world's production of shoes, or texti..
Describe at least two actions a manager can take to protect her or himself and the organization she or he represents from a tort lawsuit.2. Create a list of five best practices that managers in most industries could take to protect the privacy of ..
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