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Suppose the marginal cost to produce a good is $10. There is only one person who is willing to purchase the good, and she is willing to pay $90 for one unit. According to the particular two-part pricing scheme from Lecture 3, an access price will be charged and then a per-unit price equal to the marginal cost, in this case $10. If we charge our consumer $10 per unit, how much could we charge her for access?
what will happen to the hedonic wage function after the public relations campaign? what will happen to where each individual miner locates on the hedonic wage function?
What is an absolute advantage? What is a comparative advantage? Give an example where you have an absolute but not a comparative advantage. Why should we specialize and trade?
topic insurancesteve has taken an insurance policy to cover his 1940 house. at the time of application the insurer
One morning the Open Market Account Manager at the New York Federal Reserve Bank discovers that the effective (equilibrium) market federal funds rate is 1.25%. Suppose the target federal funds rate is 2%. What does this indicate?
An industrial machine costing $14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The compa..
The market demand for another product you are considering selling is Q(p) = 100 ? (1)p and as the 2. Only producer of this product your production costs would be C(Q) = 40Q. What is the actual Lerner Index?
Discuss the new equilibrium price also quantity which result from these changes. Can you exhibit some of these changes graphically.
In a recent article, a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researche..
Review the discussion in the lesson regarding the financial crisis. Discuss each of the following points. Use sources from the ITT Tech Virtual Library to add to your answer.
To whatever extent you find the paternalistic and externality arguments convincing, what types of responses might they justify? Consider, for example, educational TV.
q1. an individual wants to start a business at which he expects to make 50000. getting a license for the business costs
Imagine which you are presently a college student working at a part time work. You have Concluded the subsequent as such sally projected expenses also revenues.
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