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A domestic shoe company distributes running shoes and tennis shoes for $95 per pair. The marginal cost of producing a pair of running shoes is $60 and the marginal cost of producing a pair of tennis shoes is $45. A Chinese retailer offers to purchase running shoes for $55 per pair and tennis shoes for $55 per pair for distribution in China. Should the shoe company sell any shoes to the Chinese retailer? (Ignore any potential issues of bundling the two types of shoes together as part of the sale and any competitive effects that international sales might have on current domestic sales.)
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Assume re is a multiplier effect and that total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to left or right by how much.
Assume that muffins are incredibly addictive, so consumers have perfectly inelastic demand for them, up to a certain saturation point.
One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move.
step by step all work shown answer and please show all calculations and how you got answer and make it very detailed all work shown please.
What is the new equilibrium price and quantity. Elucidate how much do dairy farmers receive per gallon of milk after the tax? how much do demanders pay.
Explain this result in terms of the example in the question above. How might things change if the border were open, with no restrictions on immigration?
Illustrate the effect of capital formatin by comparing the production possibility curves, at the present time and ten years in the future, for two economies, one with a high and the other with a low rate of capital formation.
Illustrate what do laws of supply and demand predict would be result of an immediate removal of minimum wage in terms of price of labour and quantity available.
Calculate firm 1's profit-maximizing output and profits in the absence of potential competition and calculate the output and profits of both firms in case firm 1 accommodates entry.
Why would we expect that the price elasticity of demand for the product of an individual firm would typically be greater than the price elasticity of demand for the product overall.
You are to consider pricing separately, pure bundling, and mixed bundling. Without computations, which pricing policy from above would you recommend. Please explain why.
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