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In a certain kingdom, the demand function for rye bread was q = 381 − 3p and the supply function was q = 5 + 7p, where p is the price in zlotys and q is loaves of bread. The king made it illegal to sell rye bread for a price above 32 zlotys per loaf. To avoid shortages, he agreed to pay bakers enough of a subsidy for each loaf of bread so as to make supply equal demand. How much would the subsidy per loaf have to be?
Two identical firms, Firm 1 and Firm 2, compete in quantity in a market where inverse demand is P(Q) = 100 − Q and there exists a constant marginal cost of 20 per unit. Find the Cournot equilibrium. Find the response functions q1(q2) and q2(q1)
What is the loss to fans from the monopoly power that sports franchises exert? Be precise in your reasoning. (Verbal explanation and shows P, MC and MR.)
Who are the stakeholders and how are they affected by these corporate tax-saving strategies? Do companies have a responsibility to pay a fair share of income tax to local, state, and federal governments? Who determines what that fair share should be?
The annual demand for a product has been projected at 2,500 units. This demand is assumed to be constant throughout the year. The ordering cost is $30 per order, and the holding cost is 40 percent of the purchase cost. Currently, the purchase cost is..
A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments:
Describe the equilibrium price and sales of X. Let PY = $10. Determine whether X and Y are substitutes or complements.
The traditional U.S. auto industry (the Big Three) has struggled for many years against competition from foreign-owned automobile companies. Their struggle was dramatically heightened in 2008 with the world-wide credit crunch and economic slowdown. W..
For an individual with $8,000 in annual drug expenses, how much would he/she pay out of pocket in Medicare Part D under the 2006 rules?
our company values the three tons of channel steel at $12,000. Illustrate what is your optimal bid. Elucidate how all step by step calculations to arrive at solution.
A company manufactures radios. If x is the number of radios that retailers are likely to purchase. Elucidate the revenue function of the manufacturing company.
The radio manufacturing industry has been in decline for quite some time. Suppose the government is called on to save this industry with infusions of cash, low interest loans, or other special breaks. This might be touted as helping firms remain open..
q. suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each
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