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Three stores have a problem with theft, and security is a public good. Let’s use S to stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 100 2S, and the cost of patrols is $30 per hour. What is the socially efficient level of security? If security is left to the independent decisions of the stores, what will they choose? How would your answer change if there were 5 stores?
Dewey Cheatham is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). The shipment of prescription drugs from pharmacies outside the United States to customers in the United State..
What would the equilibrium price and quantity be? How much profit is made in the industry and by each firm?
Share markets all over the world often increase or decrease together. What does a rise in the stock market indicate to you about the level of current and expected growth in the world economy?
Assume that the nation is not large enough to affect the world price. Illustrate the effects of a tariff on imports.
what additional information would be useful in the pricing decision? What would be your recommendations for setting up a model to forecast future demand for this product?
Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a ration..
Discuss how you would use regression to help you with your task—specifically, explain how you would go about evaluating the goodness-of-fit and the predictive efficacy of your model.
A personal experience to explain the relationship between virtue, values, and moral concepts as they relate to one of the three theories.
Illustrate what is Nurd's equilibrium evel of income. Illustrate what is likely to occur in the coming months if the government takes no action.
A major producer of consumer goods set out to forecast the price of fresh salmon three years ahead. Such a forecast was needed in deciding whether the firm should enter the business of supplying salmon. The firm's analysts estimated the quantity of f..
Consider a market with only two firms. Demand on this market is given by D(p) = 20 – 3p. Initially both firms have the same constant per-unit cost c1 = c2 = 2. What is the equilibrium in this market if firms behave as Bertrand competitors? How much d..
The market demand functions for corn is Qd = 15 – 2P, and the supply function of corn is Qs = 5P – 2.5. Suppose the government gives corn farmers a $0.70 subsidy per bushel of corn. What will be the effects on aggregate surplus, consumer surplus, and..
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