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Suppose that Honda is on the verge of signing a 15 year contract with TRW to supply airbags. The terms of the contract include providing Honda with 85% of the airbags used in new automobiles. Just prior to signing the contract, a manager reads that one of TRW's competitors has introduced a comparable airbag using a new technology that reduces the cost by 30%. How would this information affect Honda's optimal contract length with TRW?
If the price of a good is increased by 15% and the quantitydemanded changes by 20% then the price elasticity of demand isequal to What is the price of elasticity of demand between $2.50 and$2.25
Suppose Ben has a utility function U(x,y)= 4 * x^(0.5) * y^(0.8) The price of x is 2 dollars and the price of y is also 2 dollars. Explain WITHOUT USING ANY MATH AT ALL, just in a few words, which good is consumed more. Does Ben buy more x than y.
Given the following equations, P=1000-10Q, MR=1000-20Q, and MC=400 Calculate the competitive equilibrium consumer surplus. Calculate the Monopoly-case (a) deadweight loss, (b) remaining consumer surplus,
Suppose a man receives an initial annual salary of BD 30,000, increasing at the rate of BD 2500 a year. If money is worth 10%, determine his equivalent uniform salary for a period of 8 years.
You are un the middle of a one-year rental contract for your factory that requires you to pay $ 500,000 per month, and you have contractual labor obligations of $ 1million per month that you can't get out of.
The short-run total cost curve of a firm in a hypothetical market is given by: STC = 10Q^2 + 4Q + 100 with short-run marginal cost given by: SMC = 20Q + 4 There are 100 firms in the market. Market demand is:Qd = 500 - Pmkt
Most restaurant customers tip according to a percentage rule - between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.
There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. What is the marginal revenue of the 200th gal..
An economist has predicted that for the next 5 years the U.S. will have an 8% annual inflation rate, followed by 5 year at a 6% inflation rate. this is equivalent to what average price change per year for the entire 10-year period
In 2007, Americans downloaded 800 million singles at 99cent and 40 million albums at $10 each. They also bought 3 million singles on a disc at $4.75 each and 500 million albums on discs at $15.
In a study of housing demand, the county assessor is interested in developing a regression model to estimate the market value (i.e., selling price) of residential property within her jurisdiction. The assessor feels that the most important variabl..
Interpret the following regression equation together with all the supporting statistics where Yt is the number of new cars sold (millions of units), X1t is the disposable income of consumers ($B), X2t is the price of a new car ..
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