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1. A company purchased an oil well for $50,000. It is estimated that 100,000 barrels can be extracted from the well. What is the depletion expense assuming 30,000 barrels are extracted and sold?
Explain how you believe the rising prices affect strategic pricing-decisions made by companies that produce packaged food, cereals, canned meats and other common products found in a supermarket.
The fresh milk market in Honolulu is purely competitive. The typical production cost is defined through a a cubic cost schedule as given below.
Explain whether Wal-World has a dominant strategy and explain whether Tarbo has a dominant strategy.
1.Why, under oligopoly, might a particular industry be collusive at one time and yet highly price competitive at another?
What would cause(a) a steep ADI curve; (b) a gently sloping ADI curve? Compare the short run and long run effects of (i) a temporary adverse supply shock and (ii) a permanent supply reduction under each of (a) and (b).
Economics for the Global Manager
Explain the significance and implications of various economic theories pertaining to profit, consumer choice, demand and supply, forecasting and optimization.
Suppose you are the manager of a company that produces products X and Y at zero cost. You know that different types of consumers value your two products differently,
Some of the electric generating plants of Tennessee Valley Authority are powered by coal. Coal is bought by a separate procurement division and is transferred to plants for use.
What is the maximum height the ball reaches? What is the velocity of the ball when it hits the ground (height 0)
What do you think would have happened in the absence of the CAP?
Does a monopolist achieve efficiency in its production (that is, does it produce where MR = MC)? Will society face a welfare loss in a monopolistic market?
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