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Last year, a manufacturer created a new item that was a huge success. The company invested 2.5 million for a plastic injection molding machine (which can be sold for 2.0 mill) and 100,000 in plastic injection molds specifically for the toy. Labor and the costs of materials needed to make each item is about $3. This year, a competitor has created a similar item that has reduced demand significantly for the original item. Now, the initial manufacturer is deciding whether they should continue production of the item or not. If the estimated demand is 100,000 items, what is the break-even price for the item?
Can you describe the difference between the franchisor and the franchisee? How are these differences strategically aligned to create a competitive advantage?
a) Define elasticity of supply and briefly explain any five factors that influence the elasticity of supply. b) Explain why elasticity of supply for agricultural commodities is low.
Is it possible that this sales restriction could help liquor stores? Use game theory to construct your answer. Hint: even without restrictions on the hours of operation, individual stores could still limit Sunday sales if they wanted to.
Price comparison services on the Internet (as well as shopbots) are a popular way for retailers to advertise their products and a convenient way for consumers to simultaneously obtain price quotes from several firms selling an identical product.
Calculate profit for each quantity. How much should the firm produce to maximize profit? Calculate marginal revenue and marginal cost for each quantity.
Do you think the Patient Protection & Affordable Care Act will have no influence or add to or slow business formation and economic growth and why?
Describe the effects of an oil price shock in Keynesian model; why are such supply shocks difficult to handle using macroeconomic stabilization policies?
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations, and what can government do, if anything
Ticket scalping is common for popular games. Can ticket "scalping" be justified? Post opinion using aggregate demand and supply analysis.
Compute the optimal bundles of consumption. The total use of each good is independent of the rate of consumption of the other good.
A new taco-making machinery which is similar in size and cost to hog dog carts has encouraged more street vendors to begin selling tacos.
What sorts of businesses would be hit
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