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A firm’s cost function is C = 5Q + 0.1Q^2
1. Suppose the market price is $10. How many units will be produced by this firm to maximize its profit?
2. Is this firm in the long run or in the short run?
3. What is the lowest price at which the firm will produce?
Jack is looking to replace the recently sunk Black Pearl. In an uncharacteristically well-behaved moment, he considers buying a new ship with his pirate's hoard of gold. But which to buy? The Retribution costs $7,000 and should last three years, wher..
Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. what im..
An industry has 1000 competitive firms, each producing 50 tons of output. At the current market price of $5, half of the firms have a short-run supply curve with a slope (change in quantity/change in price) of 1; the other half each have a short-run ..
"In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The pursuit..
Social Security and Medicare are clear examples of: a. capitalism. b. market-determined services. c. market failures and externalities. d. governmental intervention in the market. "Second-hand" smoke, an often cited disadvantage of allowing smoking i..
One characteristic of a Oligopoly Market is that many sellers serve the entire market. A firm in a Monopolistic Competitive Market has no power over its on price. If a large numbers of firms are competing, then the market could be perfect competition..
A production function specifies the maximum output attainable from a given amount of inputs. The relation between output and variation in only one input is: return to scale OR returns to a factor OR Continous. Isoquants are the production analogy to ..
Claire is establishing lines of authority and reporting relationships within the finance department in her company. Which of the following organization-building actions is Claire undertaking:
Your firm is one of 100 identical firms operating in the short run in a perfectly competitive market. Your total cost function (short run and long run) is C = 800 + 25 q + 0.5 q2, and your marginal cost function is MC = 25 + q. The (short run and lon..
Susan quit her job as a teacher, which paid her $36,000 per year in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10% interest per year, on equipment for her business. She also borrowed $12,000 fro..
Conduct a light research on the role of emotion in negotiation process, and the effect it has on the outcome of the negotiation. Does emotion delay the negotiation process, or prevents parties from reaching an agreement? Why or why not? Evaluate some..
If the mutual fund will average 9% annual return over the course of your career, explain how much can you expect at retirement.
A. Suppose the demand for electricity in some large community is given by the following demand function P = 1200 – 0.4Q. If the supply function is given by P = 400 + 0.6Q. What is the market determined quantity of electricity that will be generated i..
Much of the empirical evidence on the behavior of costs for real-world firms suggests that
q1. discuss the social security system current status and future outlook. be thorough and focus on the economic
What is the mechanism in the economic system that guarantees the saving of the economy will always equal the investment of the economy? You may assume a closed economy in answering the question
the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
use the information on newell rubbermaid shown here to answer the questions below. show work.current stock price
Contracting may not be preferable to vertical integration because of which of the following conditions: Complete contracting eliminates flexibility.
You would like to save money to buy a new car that costs $10,000, but currently only have $8,000 and you know you won’t have any further excess savings to contribute more to it. You have available to you a fairly good savings account which pays conti..
Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20. According to the midpoint method, the government policy should hav..
If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits. When economic profit is positive,
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