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The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer’s inverse demand for your bran muffins is now P = 12 - 1.5Q. If your cost of producing bran muffins is C(Q) = 4.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instruction: Round your answer for the optimal package price to two decimal places. Optimal package size: units Optimal package price: $
Mary has borrowed $125,000 at 8% from her parents. She is asking Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. What is Mary's before-tax cost of capital?
q. there are three major network affiliate television stations in hicksville rbc cbc and mbc. all three stations have
A consumer has the utility function U(x,y) = x^αy^β, where x≥0 and y≥0 represent her consumption of goods X and Y, and α>0 and β>0 are exogenous parameters. Calculate the consumer’s demand functions for good X and (separately) good Y. These demands m..
Elucidate each of his major points and decide whether you consider it valid or invalid. Be sure to justify your position.
GM entered the Chinese market at a time when demand was very limited. Why? What was the strategic rational? Why did GM enter through a joint venture with SAIC? What are the benefits of this approach? What are the potential risks here? Why did GM not ..
q.imagine that e-markets is a company that implements a competitive market in mp3 players. based on information which
How would you Measure the Well-Being of a Person? How would you measure the Well-Being of a Nation? Would you be better off if I gave you money?
Firm x develops a new product and gets a head start in its production. Other firms try to produce a similar product but discovers they have higher average total cost than the existing firm. This situation illustrates what
Explain the potential impact the high cost of college could have on the unemployment rate. Explain the potential impact the high cost of college could have on the labor force participation rate.
If a random sample of three South African men were selected at random, what is the probability that the sample mean height is greater than 72 inches? How do you do this two-part question?
Which of the following events will tend to increase net exports of the United States?
You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. The large investment required to..
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