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You are the manager of BlackSpot Computers, which competes directlyn with Condensed COmputers to sell high-powered computers to businesses. From the two businesses perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this 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, BlackSpot earns revenues of $6.38 million and profits (net of investment, R&D, and other fixed costs) of $1 million. The engineering department at BlackSpot has been stedily 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 to manufacture each computer at a marginal cost of $500. How will this technological advance impact your production and pricing plans? How will it impact BlackSpot's bottom line?
Elucidate why is it that market leaders and monopolies generally acquire rather than develop new technology.
Demonstrate each of the following events by a production possibility frontier graph, and examine what the effects of it were on economic growth;
Elucidate whether you would draw an aggregate demand or aggregate supply diagram and predict what shift each situation would cause.
Based on the newspaper government spending in the US is expected to rise through $30 billion next year. One of the senators of your state is touting how this increase in spending will lead to an rise in employment and aggregate output.
Price comparison services on the Internet (as well as shopbots) are a popular way for retailers to advertise their products and a convenient way for consumers to simultaneously obtain price quotes from several firms selling an identical product.
Illustrate what would be the impact on labor and capital markets of such a shift in tax policy. What is the likely differential incidence of substituting a payroll tax for an equal-yield corporate income tax.
Please describe in detail that the Federal Reserve's Interest Rate Policy and Economic Recovery. If you give information from somewhere else please give me the reference so that I can dig deeper to better understand.
Elucidate why the MP/P relation is deficient as the sole mechanism for determining the optimal level of resource.
When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
state history of the airline industry, plus an industry overview, and a SWOTT analysis of the airline industry. Please include references.
Find the Cantina's minimum efficient scale and its average cost when operating at minimum efficient scale and find the Cantina's marginal revenue function.
Explain how does inflation affect an company's decision-making process.
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