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The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and set is price at $2.00. The companyâ??s settlement obligations are expected to raise its average total cost per pack by about $.60. What effect will this have on its optimal price?
If interest paid on the account was compounded annually, explain how much interest on interest was earned.
In what did the South have a comparative advantage. Did the Civil War change any opportunity price in the South.
the set of efficient trades these individuals would rationally make. One of the points on the set of efficient trades you illustrated in your diagram will be a competitive equilibrium.
If the foreign country enters the market first, determine the equilibrium price and quantity. Will both countries produce. Show both average cost curves and the equilibrium.
The graph also shows the marginal revenue curve faced by this firm. Elucidate how much profit does the monopolist earn.
Little Kona is a small coffee company that is considering entering a marketplace dominated by Big Brew.
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonalds's also Wal-Mart.
What percent of the tax is borne by buyers. If income rises to $40,000, how much will tax revenue rise.
Make a prediction regarding opportunities and challenges that an increase in diversity may present in the United States in the next 50 years. Elucidate the reasons for your speculations.
Demonstrate, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs.
Elucidate Average costs are minimized when marginal costs are at their lowest point.
Explain how will the bank respond to the withdrawal. Suppose that the bank responds to insufficient reserves by reducing the amount of deposits it holds until its level of reserves satisfies its required reserve ratio.
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