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You and a friend get together to start a business, based on your friend's patent of a new and better ice cream scoop. Because you have the patent, you are the only producer of this product. You are in charge of marketing. Your research has led you to conclude that the demand function for your ice cream scoop is
Q = 200 - 4P
and the cost function is
TC = 9 + Q^2
What are your profit maximizing price and quantity? What profits will you make?
Gomez runs a small pottery firm. He hires one helper at $11,500 per year, pays annual rent of $7,000 for his shop, and spends $22,500 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth..
Pizza costs $4 a slice and cigarettes cost $10 a pack. Evan currently uses his daily income to purchase 10 slices of pizza and 2 packs of cigarettes a day. How do I determine the daily income and budget set and as far as graphing goes
health care cost have risen an average of 85% per year over the past 5 years what is the average annual percentage increase over time if the inflation rate was 7% per year how many percentage points over the inglation rate was the annual healthcar..
Consider a worker who is paid a wage of $20 per hour. The worker has a disutility h^2 of working h hours. Assume that the worker faces a tax rate t. Thus, his net (after-tax wage rate is $20 (1 - t)). (i) How many hours will the worker work if his..
An injection-molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of at ..
Rolled ball screws are suitable for high precision applications such as water jet cutting. Their total manufacturing cost is expected to decrease because of increased productivity, as shown in the table. determine the equivalent annual cost at an ..
Mario and Claudia deposit $100 into their joint account at the end of each month. If their account earns 7 percent/year/year/month (7 percent per year compounded quarterly), how long will it take them to have a total of $15,000 in their account
The given information is the quarterly sales of gasoline in the U.S. in millions of barrels during part of the 1980s and the 1990s. Determine the linear trend and use it to forecast sales for first quarter of 1992.
Calculate the BIC with the command estat ic and what is the difference between the predicted values and actual for the AR(1), AR(2) and AR(3) models.
Suppose you have been recently employed as manager of a restaurant and a very important credit card firm offers you a deal that is supposed to raise your sales.
Finally, suppose for part c only that you now have the additional information that the marginal cost to Magee's of making one transparent pie is $2 (and is constant). Magee's currently charges $5 for each transparent pie.
Consider the following information below for Pat's Pizza Restaurant and answer the questions below: Marginal Product of Capital: 4,000 Marginal Produce of Labor: 100 Wage Rate: $10 Rental Price of Pizza Ovens: $500 a) Is the owner of Pat's Pizza Rest..
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