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The Errata Book Company is a firm that sells its book to two types of consumers, type 1 and type 2. The marginal revenue Errata gets from type 1 consumers is: MR1 = 20 - 2Q1, and the marginal revenue Errata gets from type 2 consumers is: MR2 = 15 - 3Q2. If the marginal cost of producing a book is constant at $6, how much will this firm want to sell to each consumer type? Also, what price will it charge each consumer type?
Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5%, Fershur Bank’s
List the different types of market structures that big data benefits the least and benefits the most. While data collection may benefit the business community, discuss the potential concerns for consumers that arise with the proliferation of big data
In the same election game played in class, assume that we have three candidates. Now are strategies 1 and 10 still dominated by strategies 2 and 9 respectively? If not, check and see if they are dominated by strategies 3 and 8 respectively? If so, ar..
American Girl doll has an inverse demand curve of P = 150 – 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output le..
Assuming that land and labour are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Texas.
Between early 2008 and the beginning of 2009, a gradual stock-market downturn and plummeting home prices generated a substantial reduction in U. S. household wealth that induced most U.S. residents to reduce their planned real spending at any given p..
Once Bitten Corp. uses no debt. The weighted average cost of capital is 8.4 percent. If the current market value of the equity is $29 million and there are no taxes, what is EBIT? (Do not round intermediate calculations. Enter your answer in dollars,..
Assuming that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all of its policy instruments except interest on reserves, explain how the Fed should implement its three policy tools to contain in..
As a member of the Board of Directors of General Motors Corporation, you are continually concerned about the level of productivity of the company’s work force. What can management do to create enhanced productivity levels in order to maintain a profi..
Select multiple marketing channels and discuss how the channels will work together to promote the product/Marlboro cigarettes. If Malrboro Company already uses multiple marketing channels, suggest a possible strategy to improve sales using a differen..
Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by what is the Bertand-Nash equilibrium outcome?
Suppose the government sets a controlled price below the market clearing price for a commodity. Draw a diagram and use the idea of a maximum buying price to explain whether the total price paid by the buyers will end up lower or higher than before.
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