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1. Assume that a given set of resources can be used to make either handbags or wallets. The MC of a handbag is $19 and MC of a wallet is $10. If the MU of a wallet is $10 and the MU of a handbag is $30, what can be done to improve resource allocation? What can you say about the gain to customers?
2. Using marginal analysis briefly and concisely explain how the profit-making firm's decision about how much to spend on innovation is made. (Use what you've learned about optimal decision making to help you in your description. (looking mainly for one specific point regarding maximization.)
If the Rhine Corporation ignores the possibility that other firms may enter its market, it should set a price of $10,000 for its product, which is a power tool.
Illustrate what are the impacts of innovation and technology on the cost of production.
Illustrate what is the price elasticity of demand of a representative gasoline retailer's product.
Explain why might intangible resources such as human capital and intellectual assets be a more likely source of sustainable competitive advantage than tangible resources.
effects of implicit variables on supply and demand. Elucidate what would happen to the price of a pair of jeans if the following happened.
The Conference Board publishes an index of Consumer Confidence that is good measure of the non price determinant of demand, customer expectations.
Explain how are people worse off when the price level rises as fast as their incomes
Field discusses the key threats to sustainable management of forests and agricultural resources. First summarize these threats. Then,
Illustrate what factors shift your demand for goods . Give an example of how a demand determinant shifted your demand for a good.
Illustrate what does the term "Recession" mean and how do we know when one occurs. How does government intervene to move the economy out of a recession.
The MidNight Hour, a local nightclub, earned $100,000 in accounting profit past year. This year the owner, who had invested $1 million in club, decided to close club.
Describe the relative impact that every variable has on the demand. What implications do these results have for the firm's marketing and pricing policies.
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