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A Toyota Camry costs $19,600 and has an average gas mileage of 27 Km/L. A Toyota Prius costs $23,000 and has an average gas mileage of 50 Km/L. Assuming gas costs $4 per litre, generate total cost equations as a function of miles driven for each of these cars and identify the the ?xed and variable costs. How many miles do you have to drive before the two cars have the same total cost?
Suppose a chemical factory discharges waste products into a river resulting in significant damages to a local fishery. The marginal damage and the marginal abatement cost (MAC) are given by:
A 5 percent increase in the price of digital apps reduces the amount of tablet devices demanded by 3 percent. What is the cross price elasticity of demand? Are tablet devices and digital apps complements or substitutes?
Suppose, as we did in class, that consumers live for two periods and can either consume, save, or pay taxes with their income. Derive the lifetime budget constraint for the individual. What kinds of things can we say about the lifetime budget constra..
Cost is a big issue with every company, and changing technology is the biggest cost for most companies, how your company was able to cope with this problem and maintain the level of profit in a very competitive market?
The end of the Cold War saw an increase love affairs among different developed nations of the world.
What is the difference between an economic profit and an accounting profit, give an example? 3. Discuss the difference between diseconomies of scale and diminishing returns. Based on the cost curves which is more likely in businesses?
Why is rent not needed to make land available, but very useful in guiding the allocation of land in the economy to its most productive uses?
What are the three factors that determine the behavior and ultimate value of people in an organization? From a manager’s perspective, which is the most important factor of the three
Between 2011 and 2012, the quantity of cars produced and sold decreased by 20%. During the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3. Comp..
In the Solow growth model, what happens in the steady state if total factor productivity declines?
Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):
Discuss some of the characteristics of emerging economies. Why do they grow faster than more advanced economies?
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