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A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 50 - 0.5P, and the marginal cost of production is $60.
a. Determine the optimal number of units to put in a package.
b. How much should the firm charge for this package?
If the world market for crude oil experiences an increase in supply and a decrease in demand, which of the following results is expected to occur?
Suppose you have an asset that costs $11 in time period zero and has an IRR of 18%. With a retained earning rate of 5% on your remaining $7, what is the highest loan rate that would support investing in this asset? Calculate.
q. without trade the united states produces 45000 units of clothing and 150000 cans of soda. without trade brazil
The price index in the first year is 125, in the second year is 150, and in the third year is 200. What is the inflation rate between the first and second year and between the second and third year?
Suppose that the Thai Baht is trading for $0.02, inflation in the US is 3% and inflation in Thailand is 1%. What must happen to the exchange rate in order for the purchasing power parity condition to hold?
Suppose that each worker in the Home country can produce three cars or two TVs. Assume that Home has four workers. Graph the production possibilities frontier for the Home country. What is the no-trade relative price of cars at Home?
What services do you predict Bangalore India exports and what services do you predict it imports.
Profit Maximizing Rule: A firm maximizes profit by continuing to produce and sell output until Marginal Revenue (MR) = Marginal Cost (MC).
According to the production function, with 300 labor hours, Illustrate what is this economy's capacity to produce.
Everything else equal, when the market supply curve shifts inward, consumer surplus. Everything else equal, given an upward sloping supply curve, if the market demand curve were to shift outward, producer surplus
q.the warren amp smith company manufacturers commercial zippers of two kinds kind x and kind y. its production
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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