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When ShorTech introduced its Quadrant mobile phone, it had few competitors and set a price of $500 when its marginal cost per unit was $350. The economics consulting firm it hired to estimate the demand elasticity confirmed this was the optimal price based on the pricing formula (P - MC) / P = 1 / |e|. Since then, competitors have entered the market making customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4. Also, ShorTech has managed to lower its marginal cost per unit to $300. What price should ShorTech charge now? Provide support for how you determined your answer.
q1. do you think the newspaper company trusts you not to get more than one paper? no they understand the law of
Suppose an economy produces three goods (rice, bananas, and strawberries). Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.
Read the paper “The Great Depression, the New Deal and the Current Crisis” and answer the following questions: What were the similarities and difference in the economic context that preceded the Great Recession, as compared to the reasons that preced..
If actual inflation exceeds anticipated inflation, who will lose purchasing power, and who will gain? How does unanticipated inflation harm the country? As part of your answer, include how you and your employer would both be affected.
discuss whether you agree or disagree with Chairman Bernanke's remarks on economic outlook and the role of the Fed' s monetary policy effectiveness by using unconventional policy.
biolyses is a biotech division of alphacon pharmaceuticals. in its 8 years of survival biolyses has had only one drug
How is corporate venturing used as an aid to search for innovation opportunities? Explain the relationship of the organization’s strategic plan and vision statement to the corporate venturing methodology.
Suppose that the initial loan is $19,000 and the interest rate is 1.1% per month. Interest due is paid at the end of each month. $9,500 of the original unpaid balance is to be repaid at the end of months two and four only. How much total interest wou..
A merger will likely lessen competition if
Illustrate what would you do shut down or continue to operate. Use hypothetical numbers to explain.
It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are currently no taxes on cigarettes, to reduce cigarette purchases 5%, government would need to tax cigarettes enough t.:
If we select 7 colleges from a major and then record whether they are of 'School Type' 'Private' or not, is this experiment a binomial one? Why or why not?
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