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Word-of-mouth Book sales. Consider a publisher who earns a profit of $2 per book sold. An advertisement that cost $340,000 would sell 100,000 books directly. To make the advertisement worthwhile, how many of the original buyers must each persuade just one other just one other to buy the book?
Suppose a monopolist manufacturer sells his products through a monopolist retailer. The marginal cost of production is c = 5. Assume that retail demand is Q(p,s) = s(10-p)100, where s is retailer's level of effort to sell the product. The cost..
John Doe just purchased a new Glock handgun and has started carrying it with him when he goes out to restaurants and bars, in violation of Maryland law. He goes to have a few drinks at R.J. Bentleys in College Park, MD and takes the gun with him. Can..
Describe at least four characteristics of a good business.Identify and talk about at least four companies that you regard as having the characteristics.
Consider a Solow economy with the following Cobb-Douglas production function: The capital share of output (a) is 25%, population growth (n) is 1.5%, and the depreciation rate (δ) is 4%. The economy is in steady-state with a growth rate of output per ..
Suppose that there is a natural disaster that destroys part of the nations capital stock. Determine the effect on aggregate output, consumption, employment, and the real wage, with reference to income and substitution effects, and explain your result..
"If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed or misallocated resources in Mexico." Is this statement true or false?
We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order.
Explain why an industry in a perfectly competitive marketplace would choose to remain in business, if its profit is zero at equilibrium.
How does a negative externality change the supply and demand equilibrium point? Draw the graph with and without the negative externality and explain what happens to the supply ? ( Counpastion externality )
Describe what will happen to supply or demand for the dollar and for the euro in each of the following scenarios. Be sure to include whether each currency rises or falls in value.
Draw the Cost effectiveness Frontier - What concept can you attribute this change in treatment choice before and after insurance? Explain.
The opportunity cost of consuming good A is lower than the opportunity cost of consuming good B.
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