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Q1. A corporation has $7 million in equity. During the tax year it takes in $4 million in receipts and earns $2 million in capital gains from sale of a subsidiary. It incurs labor costs of $1 million, interest costs of $250,000, material costs of $500,000, and pays rentfor structures of $250,000. Compute the corporation's total accounting profit
Q2. Assume there are two firms in a market who each simultaneously choose a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 190 - 3Q. Also, each firm has constant marginal cost equal to 10. There are no fixed costs.
Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket price for the theater.
Draw an Edgeworth box with indifference curves through this endowment. At what combinations of X and Y are both better off (i.e., are Pareto Improving)? At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
q.suppose there is a business firm that holds a global monopoly on a particular product but is currently selling the
What is the dollar value of the deadweight loss when output level Q2 is being produced? What is the total surplus when output level Q2 is being produced?
Economists discuss that there is an efficient amount of pollution abatement. Why is the efficient amount of abatement unlikely to be either zero or 100 percent?
Illustrate what kinds of statistics, graphs, or illustrations does author include. In Illustrate what ways do se visuals strengthen author's arguments.
Compute the resulting utility if the population were on million higher and one million lower than the optimum.
Evaluate and discuss strengths and weaknesses of both approaches. Discuss any improvements in selection process of either firm that you would recommend.
If instead she travels to Florida the trip will give her 8,000 units of utility and will cost her only $200. Joan will do best going to?
What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?
What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?
Everyone who has baked with the new flour loves it, but she is having trouble getting potential consumers to the desire stage of the AIDA concept.
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