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What is predatory pricing? Do economists think that predatory pricing is commonly employed as a profitable business strategy? Why or why not?
Discuss which members of society are likely to perceive the trend you are discussing from which perspective. For example, attending Justin Beiber's movie (or concert) could be understood in a number of different ways using these theories; which me..
determine the real interest rate for the years 1978 through 1982 assuming that people expect the rate of inflation to be the average rate of inflation in the two previous years. Year: 1977 1978 1979 1980 1981 1982 Nominal interest rate: 5.6% 7.6% ..
Consider the following data. Currency $400 billion Bank reserves $500 billion (a) If banks are holding $80 billion in required reserves, and the required reserve ratio = 0.10, what is the value of checkable deposits
which requires at $10,000 license fee to use their design. Tooling costs $5000. Materials and consumables (cutting fluids, milling cutters, power, etc) are budgeted at $40 per product. Your company applies an overhead rate of 25%
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000
Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25,00 if the boat is a total loss.If the boat is not a total loss but the damage is more than $10,000 the policy pays $..
A firm is considering purchasing $64800 of hand tools for use on a production line. It is estimated that the tools will reduce overtime work by $2000 the first year, with this amount increasing $1300 per year thereafter.
Vaguely remembering his intoductory economics course, thechief Financial officer tells the CEO it is better to produce 1case of ball bearings , because marginal revenue equals marginalcost at the quantity . what are the firms's profit /losses at t..
A coal mining company has a supply curve of W=48 + (72/2000)L and Demand of P= 60- (9/4000)Q. coal miners produce 8 tons of coal a day. they max profit. How many workers will be hired.
Suppose there are n identical firms in a market. Each firm's cost function is given by C = 240+ 15q2, where q is the amount that an individual firm produces. This means that an individual firm's marginal cost is given by MC = 30q. Also, the marke..
A firm believes the sales volume (S) of its product depends on its unit selling price and can be determined from the equation P=$100-S. The cost (C) of producing the product is given by equation C=$1000+10S.
What if you know that only 50 million tickets have been sold. Explain why, if people tend to use their childrens' birthdays when selecting numbers to play on the "Pick Three" lottery, you might be better off using the last six digits of your Socia..
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