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The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and set is price at $2.00. The companyâ??s settlement obligations are expected to raise its average total cost per pack by about $.60. What effect will this have on its optimal price?
What data the organization needs in order to make good decisions and how the use of macroeconomic indicators enables organizations to improve their forecasts of the key decision-making data.
Give two distinct reasons why studies might show that physicians firm might use too few nurses and other aides relative to profit maximizing amount of those two types of input.
Even among professional sport players, the salaries for players in some sports are generally significantly higher than the salary in some other sports. Elucidate how does this make sense using supply and demand in a market in equilibrium.
What happens to the aggregate quantity demanded in nominal terms over this interval? Using the formula for price elasticity of demand what is the elasticity of aggregate demand over this interval?
How does subsidy affect consumer surplus, producer surplus, tax revenue and total surplus. Does a subsidy lead to a deadweight loss.
What would be the value of consumer surplus if the market were perfectly competitive? What is the value of the deadweight loss when the market is a monopoly?
What is the total market demand for poly-glue at the price established by Alchemy. How much of the total demand will the follower firms supply.
Compute an appropriate measure of association also decide how to present the results.How might this information involve the advertising approach.
Assume that Omar's marginal utility for cups of coffee is constant at 1.5 utils every cup no matter Elucidate how many cups he drinks.
Write down an expression for the profit GBC will make if it uses L units of labor at $1 an hour and sells the resulting output of cookies at $p a cookie.
illustrate what does the efficient market hypothesis say will happen to the price of the stock when the $4 loss is announced.
Sketch a well labeled graph showing the impact of the tax. On whom does the tax burden fall-the team's, owners, the fans, or both.
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