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You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to business. From the two businesses' perspective, 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 assumption that the rival will hold output constant. The inverse 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 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 to manufacture each computer at a marginal cost of $500. How will this technological advance impact production and pricing plans? How it will impact BlackSpot's profit?
If the company wishes to restore its sales to 10,000 pairs a month, illustrate what price should it charge every pair of socks.
Assume the subsequent data describe o/p in two different yrs. Compute nominal GDP in every yr.
When politicians using polling data emphasize issues to polls have given more importance than necessary they have fallen
Assume which an innovation reduces a industry's fixed costs also reduces cost from ATC to ATC. Before the innovation reduced the cost, the industry's maximum economic profit was
Illustrate what are the effects on the growth rates of cumulative o/p, cumulative consumption, and also cumulative investment.
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
Which he can trade at the going prices. He has no other source of income. Illustrate what is Nick's gross demand for x.
Assume that the newspaper can't differentiate students from teachers and can only charge a fixed price per article.
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice reven..
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
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