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Suppose that you own a car wash and that its total cost fuction is: C= 20 + 2Q + .3Q^2, where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed.
A. What is the optimal number of cars to wash per hour?
B. What is the maximum profit that you can obtain?
C. Derive the firms short run supply curve?
D. If there are 6 identical firms, what is the industry supply?
Illustrate what is Gillette's advertising elasticity. Is Gillette's Demand more or less responsive to advertising than other firms in its peer group. Elucidate also Elucidate how all calculations.
Now she wants to pay off the remaining installments in one lump sum (at the end of 12 months). How much does she owe the furniture store?
If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings
Which set of actions maximizes the total payoff of Nikita and Margaret? Is it likely that they will choose the payoff-maximizing actions without some communication? Why or why not?
Top four firms in Industry B have market shares of top four firms in Industry B have market shares of 15,12,8 and 4 percent, respectively. Calculate four-firm c0ncentration ratios for two industries. Which industry is more concentrated.
Evaluate the effect of each of these four changes on demand based on the estimates provided and what is the net effect of all the changes taken together
an across-the-board tax reduction in income tax rates or a package of tax-relief measures that would give every household a $200 tax rebate and allow them to deduct the interest they pay on credit card purchases?
Illustrate what will be real interest rate that clears goods market at G = 2000 and Y = 10,000. Conclude autonomous investment and marginal propensity to invest.
Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.
Under the first plan he pays $0.25 per minute of connect time. Under the second plan, he pays a lump sum of $30 per month and only $0.10 per minute of connect time. Determine David's optimal consumption bundle and his choice between the two plans.
Use the orange points square symbol on the graph below to plot the short-run industry supply curve for the wheat industry.
Illustrate on your graph and in words all important points and areas on the business cycle.
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