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You are the marketing or pricing director for a large firm. By spending $8.5 million in research and development, your firm has developed a product for treating certain ailments. In addition to the development costs, each set of 30 pills costs you $3.00 to manufacture and distribute. You expect to sell approximately 1 million prescriptions in the US before your patent expires and your sales dwindle to zero. Therefore, total cost per prescription is approximately $11.50. Your international director wants to sell in Canada as well, but price ceilings there limit the selling price to $5 per prescription. Canadian sales will likely be 200,000 prescriptions if you sell at that price. Should you sell your product in Canada? Why or why not?
A machine, purchased for $45,000, has a depreciable life of 4 years. It will have an expected salvage value of $5,000 at the end of the depreciable life. Using the straight-line method, what is the book value at the end of year 3?
How many units of x1 and x2 will the firm use to produce y units of the output? What is the cost of poducing y units of the output for this firm?
Three graduate business students are considering operating a fruit smoothie stand in the Harbor Springs, Michigan, resort area during their summer break. What is the accounting cost function for this business? What is the economic cost function for t..
On a typical day the Fed conducts defensive open market operations (defensive OMO) in order to keep the federal funds rate constant. With the aid of a graph of the federal funds market and a verbal explanation, show how the Fed does this, namely how ..
Billions of people in the world make two dollars a day or less. In fact, a billion people make less than one dollar a day. In such places, a loan of $100 or $200 makes a huge difference. Why is there a need for organizations like Opportunity Internat..
If Professor P chooses x and s to maximize her utility subject to the constraint that Mr. A is willing to work.
The interest earned is deposited back into the savings account at the end of each month. How much is this account worth after 24 years? Submit your answer to the nearest dollar.
Describe the characteristics of Oligopoly. What are some industries that behave like oligopolists?
Define the Quantity of Money theory and identify whether this is a Keynesian or Classical cornerstone. Describe what happens when, according to this theory, the money supply is increased.
The role of the government in families/child rearing/parenting. Should the government ban or restrict how we discipline our children (ban corporal punishment - like hitting or spanking)?
Assuming that the discount rate remains the same, what will be the price of the stock after the announcement?
In another graph, show how this policy would impact the hours supply decision of a mother of a preschooler who is already working.
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